Strategy CEO Phong Le told Bloomberg Television on July 14 that Bitcoin would need to fall to between $8,000 and $10,000 before the company's $6.7 billion in convertible debt obligations pose a real balance-sheet risk. The company holds 843,775 BTC acquired for $63.69 billion and has expanded its U.S. dollar reserve to $3 billion. Le dismissed concerns about the corporate Bitcoin treasury model, stating the cash reserve covers approximately 20 months of obligations without requiring new securities issuance or Bitcoin sales.
Strategy Expands Cash Reserve to $3 Billion
Strategy boosted its cash position after a recent stock sale, a move Le said was driven by preferred shareholder feedback requesting greater liquidity. Under the company's Digital Credit Capital Framework, the reserve is restricted to preferred dividends and interest on outstanding debt unless the board approves another use.
Strategy estimated annual preferred dividends and interest expense at approximately $1.76 billion when the framework launched on June 29. At that run rate, the $3 billion reserve covers roughly 20 months of obligations without requiring new securities issuance or further Bitcoin sales.
"When Bitcoin gets down closer to $8,000 to $10,000, that's when we have to consider some of the risks associated with our debt," Le said. "Until that point in time, we feel very secure about the balance sheet."
CEO States $8,000 Bitcoin Price as Debt Risk Threshold
Le's figure represents a decline of roughly 88% from Bitcoin's approximate trading level near $64,000 on July 15. At its current cost basis of about $75,500 per coin, Strategy is already carrying unrealized losses, yet Le framed the company's capital structure as designed to absorb prolonged drawdowns rather than short-term volatility.
He pointed to a recent $200 million Bitcoin sale that "did not move the market," arguing the company's 843,775 BTC, roughly 4% of total supply, does not create systemic selling pressure. "Bitcoin is a lot bigger than us," Le said, noting that the cryptocurrency records $30 billion to $40 billion in daily trading volume.
Strategy Plans STRC Restoration to $100 Par Value
Le confirmed that Strategy plans to restore its preferred security, STRC, to its $100 par value before issuing additional preferred shares. "We plan to get STRC back to par," Le told Bloomberg, adding that proceeds from future preferred issuance would fund additional Bitcoin purchases.
Le personally purchased $1 million in STRC in recent weeks, according to the company's post on X. The company's stated goal remains reaching 1 million BTC through a combination of debt and equity issuance. "My objective would be to be the largest buyer of Bitcoin for the foreseeable future," Le noted.
Company Retired $1.5 Billion Debt in May 2026
The company retired $1.5 billion in convertible debt for $1.38 billion in cash during May 2026, achieving a year-to-date BTC yield of 13.3%. Strategy's next quarterly earnings report will show whether the expanded cash reserve and STRC stabilization plan hold under continued bear-market conditions.
FAQ
What Bitcoin price did Strategy's CEO identify as a debt risk threshold?
Strategy CEO Phong Le stated on July 14 that Bitcoin would need to fall to between $8,000 and $10,000 before the company's $6.7 billion in convertible debt obligations pose a real balance-sheet risk.
How long does Strategy's cash reserve cover its obligations?
Strategy's $3 billion cash reserve covers approximately 20 months of obligations based on the company's estimated annual preferred dividends and interest expense of approximately $1.76 billion.
What is Strategy's plan for its STRC preferred security?
Strategy plans to restore its preferred security, STRC, to its $100 par value before issuing additional preferred shares. CEO Phong Le personally purchased $1 million in STRC in recent weeks.
