Strategy (MSTR), the largest public holder of Bitcoin $BTC$64,613.67I won’t panic unless $BTC According to the CEO, prices will fall in the $8,000 to $10,000 range.
Von Reh said in an interview with Bloomberg TV on Tuesday that the scope is if the company “needs to consider some of the risks associated with the debt.”
Such a decline corresponds to a decline of approximately 85% based on Bitcoin’s current price of approximately $64,500 at the time of writing.
“To that point, we feel very comfortable about our balance sheet,” Lee said. “What we have to do is build a capital structure that can withstand bear markets and of course benefit from bull cycles.”
Strategy’s preferred stock STRC, which is designed to provide cash flow to fund Bitcoin purchases in exchange for regular dividends, currently yields 13% annually, but has come under pressure in recent months. The stock is designed to maintain a par value of $100, but it lost par in April and fell below $75 in late June.
If STRC falls below $100, Strategy’s ability to issue new shares and use that cash to buy Bitcoin will be restricted.
