Bitcoin Giant Strategy Isn't Panicking—Unless BTC Crashes to $10K: CEO
Strategy will resume Bitcoin purchases only after its preferred shares, Stretch (STRC), return to their $100 par value, CEO Phong Le said. The company has paused buying since late June and is instead building a larger U.S. dollar reserve, recently raising $467 million in common stock and growing cash to $3 billion, enough to cover about two years of dividends. Le said restoring STRC’s price is key because issuing more of the preferred stock is central to Strategy’s capital plan and would be accretive to Bitcoin per share. STRC has traded below par since mid-May, making new issuance unattractive. Le said Strategy is not retreating from Bitcoin and remains the largest known holder, with more than 840,000 BTC. He argued recent Bitcoin sales were minor and that the company’s balance sheet is secure unless Bitcoin falls far lower, around $8,000 to $10,000. Strategy’s stock and Bitcoin have both dropped sharply, leaving the financing engine for further purchases stalled.
