Strategy CEO: Confident unless Bitcoin falls below $10,000

Strategy is confident unless Bitcoin drops below $10,000. The firm paused Bitcoin buys, built a $3B reserve, and plans to resume purchases once preferred shares recover.

Strategy CEO Phong Le stated that the company feels very secure about its financial position unless Bitcoin's price drops to the $8,000–$10,000 range, representing an 85–88% decline from current levels. Only at this threshold would the company need to consider risks related to its $6.7 billion in convertible debt. Since late June, the company has paused Bitcoin purchases, instead raising $467 million through a common stock sale to build a $3 billion cash reserve. This reserve is sufficient to cover up to two years of dividends and interest expenses. Le emphasized that issuing more preferred stock, once its value recovers to $100 par, is a key part of the capital plan and would enable the company to resume Bitcoin acquisitions. Despite recent Bitcoin sales and a drop in preferred share value, Strategy remains confident in its balance sheet and is preparing for the next growth cycle.