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Ahmed Barakat
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In the latest Bitcoin news, Strategy CEO Phong Le said Bloomberg TV That the company’s balance sheet will remain very safe until Bitcoin reaches the $8,000-$10,000 range makes it a threshold stress on the capital structure linked to debt risk rather than market call. At the current BTC price of approximately $64,500, this level indicates a decline of approximately 85%.
MSTR closed at $97.58 on Tuesday, up nearly 6% on the day. The rally does not change the underlying tension between the strategy-driven BTC accumulation model and the current market willingness to fund it.
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Bitcoin News: What the $8K-$10K Minimum Really Represents
Lu described the $8,000-$10,000 level as the point at which the strategy has to take into account some of the risks associated with its debt. He also said: “Until then, we feel very safe about the balance sheet. What we need to do is build a capital structure that can withstand bear markets, and of course take advantage of bull cycles.”
Lu discussed a more extreme scenario on Bloomberg TV: Bitcoin would need to “decline by 90% or five years sustainably” before the strategy sells Bitcoin to satisfy convertible debt, a scenario he described as “extremely unlikely.” This framing is intentional.
The strategy has consistently positioned any Bitcoin liquidation as a hypothetical event, rather than an operational emergency, and the capital structure is designed to keep it that way.
The strategy holds more than 840,000 BTC as of mid-2026, making it the largest holder of BTC in the world. An 85% drawdown would destroy the asset side of the ledger, but it is the liability side, specifically the timing of debt maturity and the cash reserve reserve, that determines whether a distress sale actually occurs.
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STRC’s nominal issue and USD reserve leverage
The most pressing pressure point is not convertible notes; It’s STRC, the strategy’s perennial favorite stock. The STRC was designed to hold a face value of $100 and pay a 13% annual yield, but it lost face value in April 2026, then collapsed to less than $75 in late June before partially recovering to around $90. When the value of STRC drops below $100, it limits the strategy’s ability to issue new shares to fund Bitcoin purchases.
Lu pointed to building US dollar reserves as a key tool for restoring STRC’s confidence: “We’ve learned over the past couple of months that having that liquid US dollar capital is very important.
So we will continue to build that. The strategy raised its cash reserve to nearly $3 billion, up from the previous target of $1.4 billion, after selling shares, allowing the company to pause bitcoin sales between July 6 and July 12. This reserve has been sized to cover profits and interest for approximately 21 months without touching the Bitcoin treasury.
Multiple media outlets reported that the strategy actually sold 3,588 Bitcoin at a price of approximately $60,000, below the average cost of approximately $75,000, to fund the preferred dividend earlier this year. Le frames these as tests of operations and harvesting tax losses rather than meager sales.
This framework is reasonable given the amount of reserve that exists now, but the fact that Bitcoin is selling at below cost is a data point that the market has not fully absorbed. BTC monetization software is specifically designed to prevent this from becoming routine.
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