Strategy CEO Von Leh dismissed concerns about the company’s rising debt. He said Bitcoin would need to fall from $8,000 to $10,000 before the balance sheet comes under real pressure.
In an interview with Bloomberg, Lee said that despite the current bear market, Strategy’s finances remain safe. Moreover, the company is poised for Bitcoin’s next rally.
Debt risk remains low
“When Bitcoin approaches $8,000 to $10,000, that’s when we need to consider some of the risks associated with debt,” Lee said. “To that point, we feel very comfortable about our balance sheet.”
He added that Bitcoin has survived multiple market cycles and expressed confidence that another bull market will eventually arrive.
“We experienced this in 2022 and will experience it again in 2026. I’m pretty excited about the next bull market in Bitcoin,” Lu said.
Building cache and strengthening STRC
Strategy recently increased its US dollar reserves to $3 billion through a stock sale. Mr Lee said the move was prompted by feedback from preferred shareholders who wanted improved liquidity.
The company is also focused on restoring its preferred security, STRC, to its $100 par value. This is done before issuing further preference shares.
“Our plan is to bring STRC back to par,” Lee said, adding that keeping debt risk low revolves around building cash reserves and maintaining a strong balance sheet.
Once STRC returns to par, Strategy plans to issue more preferred stock and use the proceeds to purchase additional Bitcoin.
Bitcoin is more important than strategy
Lee also dismissed concerns that the strategy has too much influence on Bitcoin’s price.
The company holds more than 840,000 BTC, making it the largest confirmed corporate holder, but Le pointed out that it only accounts for about 4% of Bitcoin’s supply.
“Bitcoin is much bigger than us,” he said, noting that the cryptocurrency has a trading volume of $30 billion to $40 billion per day.
To support his claim, Le cited Strategy’s recent $200 million Bitcoin sale, saying, “It didn’t move the market. In fact, the market went up during that period.”
Still committed to buying Bitcoin
Le revealed that Strategy has no plans to slow down its Bitcoin strategy.
“We’re not going anywhere,” he said. “My goal is to become the largest purchaser of Bitcoin in the near future.”
For now, the company remains focused on strengthening its balance sheet, restructuring STRC, and continuing to accumulate Bitcoin. At the same time, we are preparing for the next market cycle.
