In the latest Bitcoin update, Strategy CEO Phong Le told Bloomberg TV that the company’s balance sheet would remain robust unless Bitcoin declines to the $8,000–$10,000 range. He characterized this level as a stress point for the firm’s capital structure tied to debt exposure, rather than a directional price forecast. With Bitcoin currently around $64,500, such a move would represent roughly an 85% drop.

Strategy’s stock (MSTR) closed Tuesday at $97.58, gaining about 6% on the day. Still, the rebound does little to resolve concerns about the company’s leveraged Bitcoin acquisition strategy and the market’s willingness to keep financing it.

Bitcoin News: Decoding the $8K–$10K Threshold

Le said the $8,000–$10,000 band marks the point where Strategy would begin evaluating debt-related risks. For now, he maintained that the balance sheet remains strong, with the company focused on building a capital structure capable of weathering downturns while capturing upside during bull markets.

He also outlined a severe downside scenario, noting that Bitcoin would need to fall 90% or remain depressed for five consecutive years before Strategy might consider selling BTC to meet convertible debt obligations—an outcome he described as extremely unlikely. This reinforces the firm’s stance that any Bitcoin liquidation would only occur under exceptional conditions.

As of mid-2026, Strategy holds more than 840,000 BTC, making it the largest corporate Bitcoin holder globally. While a sharp decline would significantly impact asset values, whether forced selling occurs depends largely on the liability side—specifically debt rewritematurities and available liquidity.

STRC Weakness and the USD Liquidity Focus

The more immediate pressure point is Strategy’s perpetual preferred stock, STRC, rather than its convertible debt. Designed to maintain a $100 par value with a 13% yield, STRC fell below par in April 2026 and dropped under $75 in late June before recovering to around $90. Trading below par limits the company’s ability to issue new shares to fund additional Bitcoin purchases.

To stabilize confidence, Le emphasized the importance of building U.S. dollar reserves. Following a recent stock sale, Strategy increased its cash holdings to about $3 billion, up from a prior $1.4 billion target, allowing it to pause Bitcoin sales between July 6 and July 12. This buffer is sufficient to cover dividends and interest payments for roughly 21 months without tapping its Bitcoin reserves.

Earlier reports showed that Strategy sold 3,588 BTC at roughly $60,000—below its average cost basis of about $75,000—to fund preferred dividends. Le framed these transactions as operational testing and tax-loss harvesting rather than distress-driven sales.

While that explanation aligns with the firm’s improved liquidity, selling Bitcoin below cost remains a detail the market has yet to fully digest. Strategy’s Bitcoin Monetization Program is intended to ensure such sales remain rare rather than routine.