Strategy Sees No Bitcoin Threat

Strategy President and CEO Phong Le told Bloomberg Television that the company's balance sheet remains on firm footing at current $BTC prices, pushing back against growing concerns over the firm's leverage.

Debt Risk Only at $8,000 to $10,000

Strategy, the largest public holder of Bitcoin, would only begin considering balance-sheet risks if BTC sinks to the $8,000 to $10,000 range. Phong Le identified that range as when the company "would have to consider some of the risk associated with our debt," in an interview with Bloomberg TV. Such a drop would represent a decline of around 85% based on Bitcoin's price at the time of writing.

Le said Strategy must "build a capital structure that can withstand bear markets," and expressed confidence the company remains positioned to benefit from future rallies. "We've been through this in 2022, we're going through it in 2026, and I'm pretty excited about the next bull market of Bitcoin," Le said.

Cash Reserves Bolstered, Bitcoin Accumulation Paused

Strategy increased its U.S. dollar reserve by $466.7 million to $3 billion through its at-the-market equity program, according to a regulatory filing. Le said the decision to hold $3 billion in cash reflects feedback from preferred shareholders rather than a change in the company's Bitcoin thesis. Strategy estimated annual preferred dividends and interest expense at approximately $1.76 billion, meaning the $3 billion reserve covers roughly 20 months of obligations without requiring new securities issuance or further Bitcoin sales.

Strategy made no Bitcoin purchases or sales during the period, leaving its holdings unchanged at 843,775 BTC, acquired at an aggregate cost of approximately $63.69 billion at an average price of $75,476 per coin. At its current cost basis, 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.

Le dismissed concerns over Strategy's market influence, pointing 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. Despite the recent pause in accumulation, Le reaffirmed that Strategy plans to remain a long-term buyer of Bitcoin.

Sources:
CoinDesk: Strategy feels 'very secure' until Bitcoin reaches $8,000-$10,000, says CEO
CoinDesk: Strategy adds $467 million in cash, makes no changes to Bitcoin holdings
Bloomberg: Strategy CEO aims to boost preferred shares, buy more Bitcoin