Bitcoin · Strategy · Bloomberg · Decrypt
Bitcoin Giant Strategy Isn't Panicking—Unless BTC Crashes to $10K: CEO
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Bitcoin treasury firm Strategy will start buying the cryptocurrency again once its preferred shares recover, CEO Phong Le said, as the company leans on a retooled financing model to ride out the crypto downturn.
Key facts
- Bitcoin's a lot bigger than us," he added, noting the asset trades $30 billion to $40 billion a day, and that the firm's $216 million in recent sales "did not move the market
- STRC has traded below its $100 par since mid-May, changing hands around $89 on Wednesday
- When Bitcoin gets down closer to $8,000 to $10,000 is when we're going to have to consider some of the risk associated with our debt," he said, adding that, "Until that point in time, they feel secure
- Instead, it has spent recent weeks building cash, raising $467 million through a common-stock sale to lift its reserve to $3 billion—enough to cover two years of dividend payments
Summary
Strategy CEO Phong Le said the company will resume buying Bitcoin once its Stretch (STRC) preferred shares return to their $100 par value, allowing it to issue more of the stock profitably. The firm has paused purchases since late June and raised $467 million in common stock to build a $3 billion cash reserve, enough to cover two years of dividends. Le said the company would have to "consider some of the risk associated with our debt" if BTC were to fall to the $8,000 to $10,000 range. Speaking to Bloomberg TV on Tuesday, Le said the plan is to get the firm's preferred shares—known as Stretch (STRC)—back to their $100 par value.