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Ahmed Barakat
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In the latest Bitcoin news, Strategy CEO Phong Le told Bloomberg TV that the company’s balance sheet would remain very secure until Bitcoin reaches the $8,000–$10,000 range-framing it as a capital-structure stress threshold tied to debt risk rather than a market call. At BTC’s current price of ~$64,500, that level implies roughly an ~85% drawdown.
MSTR closed at $97.58 on Tuesday, up roughly 6% on the day. The rally doesn’t change the underlying tension between Strategy’s levered BTC accumulation model and the market’s current willingness to fund it.
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Bitcoin News: What the $8K–$10K Floor Actually Represents
Le described the $8,000–$10,000 level as the point at which Strategy would have to consider some of the risk associated with its debt. He also said, “Until that point in time, we feel very secure about the balance sheet. What we need to do is build a capital structure that can withstand bear markets and, of course, benefit from bull cycles.”
Le discussed an even more extreme tail scenario on Bloomberg TV: BTC would need to ‘go down 90% or for five years sustainably’ before Strategy might sell Bitcoin to satisfy convertible debt, a scenario he called ‘extremely unlikely.’ That framing is deliberate.
Strategy has consistently positioned any BTC liquidation as a hypothetical tail event, not an operational contingency, and the capital structure is engineered to keep it that way.
Strategy holds over 840,000 BTC as of mid-2026, making it the world’s largest corporate Bitcoin holder. An 85% drawdown would devastate the asset side of the ledger, but the liability side, specifically the timing of debt maturities and the cash reserve buffer, is what determines whether distress selling actually occurs.
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STRC’s Par Problem and the USD Reserve Lever
The more immediate pressure point isn’t the convertible notes; it’s STRC, Strategy’s perpetual preferred stock. Designed to hold a $100 par value and pay a 13% annual yield, STRC lost par in April 2026, then crashed below $75 in late June before partially recovering to around $90. When STRC falls below $100, it restricts Strategy’s ability to issue new shares to fund BTC purchases.
Le pointed to building USD reserves as a key lever to restore STRC confidence: ‘We’ve learned over the last couple of months that having that liquid access to U.S.-dollar capital is quite important.
So we’ll continue to build that.’ Strategy raised its cash reserve to approximately $3 billion, up from a prior $1.4 billion target, following a stock sale, which allowed the firm to pause BTC sales between July 6 and July 12. That reserve is sized to cover dividends and interest for roughly 21 months without touching the Bitcoin treasury.
Many news outlets reported that Strategy did sell 3,588 Bitcoin at roughly $60,000, below its ~$75,000 average cost basis, to fund preferred dividends earlier this year. Le frames these as operational process tests and tax-loss harvesting rather than distress sales.
The framing is plausible given the scale of the reserve now in place, but the fact that BTC was sold below cost is a data point the market hasn’t fully digested. The BTC Monetization Program is designed precisely to prevent that from becoming routine.
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