Strategy CEO: Bitcoin would need to fall to $8K to pose financial risk

Strategy (MSTR) CEO Phong Le stated in an interview with Bloomberg that Bitcoin would have to fall to a range of $8,000 to $10,000 to put pressure on the company's financial structure. He said that Strategy's financial position remains stable despite the current market downturn and that while they would need to consider debt-related risks if BTC fell to $8,000, they are currently confident in their financial structure. Le added that Bitcoin has survived multiple cycles, noting that the company experienced downturns in 2022 and this year, and is looking forward to the next bull market. He explained that a recent common stock sale increased their cash holdings to approximately $3 billion, a move made in response to preferred shareholders' demands for greater liquidity. Strategy is currently focused on restoring the STRC par value to $100, after which it plans to issue additional preferred shares. The funds raised from this issuance will be used to purchase more BTC. Addressing concerns about Strategy's influence on the market, Le emphasized that the company's holdings represent only 4% of Bitcoin's total supply. He pointed out that BTC's daily trading volume exceeds $30 billion and that the price actually rose even after Strategy recently sold $200 million worth of the asset. Le stressed that Strategy has no plans to abandon its Bitcoin accumulation strategy and aims to continue being the largest buyer of BTC.