Strategy CEO Phong Le said the company would not face serious balance-sheet concerns unless bitcoin falls dramatically into the $8,000–$10,000 range, emphasizing that the firm remains in a strong financial position for now.

Strategy (MSTR), the largest publicly traded company holding bitcoin, would only need to reconsider debt-related risks during an extreme BTC downturn, Le said in a Bloomberg TV interview on Tuesday.

He identified the $8,000–$10,000 range as the level where Strategy would need to evaluate potential risks associated with its debt. Such a move would represent a decline of roughly 85% from bitcoin’s current trading level near $64,500.

Le said the company feels confident about its balance sheet until that point and is focused on creating a capital structure capable of surviving bear markets while benefiting from future bitcoin upcycles.

Strategy’s preferred stock STRC, which helps support the company’s bitcoin acquisition strategy by providing capital in exchange for a regular dividend currently around 13% annually, has experienced pressure in recent months. The stock was designed to maintain a $100 value but slipped below that level in April and later fell under $75 in late June.

A price below $100 reduces Strategy’s ability to issue additional STRC shares and use the proceeds to purchase more bitcoin.

Le said increasing the company’s U.S. dollar reserves is an important step toward helping STRC recover toward the $90 area. He noted that recent market conditions showed the importance of maintaining strong access to dollar liquidity and said the company plans to continue building its cash reserves.

MSTR shares closed nearly 6% higher at $97.58 on Tuesday, although the stock remains down about 36% so far this year and 78% lower than its level a year ago.

Market participants are closely tracking Strategy’s market capitalization-to-net-asset-value (mNAV) ratio, which measures the company’s valuation against the value of its bitcoin holdings. The ratio dropped below 1 at the end of June but has since recovered to about 1.02, showing that MSTR trades at only a small premium to its BTC holdings.

Le said that as long as MSTR continues trading above the net asset value of its bitcoin reserves, investors are assigning value to Strategy’s approach beyond bitcoin’s own price appreciation.