- Strategy CEO Phong Le reaffirmed the company’s long-term commitment to Bitcoin.
- The company said its $3 billion cash reserve strengthens balance sheet resilience.
- Strategy plans to issue more STRC preferred shares once they return to the par value.
Strategy CEO Phong Le once again maintained the company’s long-term commitment to Bitcoin during an appearance on Bloomberg Markets: The Close, saying the company remains focused on expanding its digital capital platform while continuing to accumulate Bitcoin over time.
Speaking with Bloomberg’s Katie Greifeld and Romaine Bostick, Le outlined Strategy’s capital management plans, the company’s $3 billion cash reserve, its preferred stock strategy, and why it believes its balance sheet can withstand prolonged Bitcoin downturns.
Beyond a Bitcoin Treasury Company
Le said Strategy has evolved from being solely a Bitcoin treasury company into what it describes as a full digital capital platform.
The company now holds more than 840,000 Bitcoin, making it the largest publicly identified corporate Bitcoin holder, while also managing $10.5 billion worth of its STRC preferred securities.
According to Le, that growth has expanded Strategy’s responsibilities beyond Bitcoin holders to include both common and preferred shareholders.
One of the biggest changes has been the decision to build a $3 billion cash reserve, following feedback from preferred shareholders who wanted greater liquidity on the balance sheet.
The company also recently paused Bitcoin purchases and sales between July 6 and July 12 after raising fresh capital through stock offerings.
Le said the reserve is intended to strengthen Strategy’s financial position rather than signal a change in its Bitcoin strategy.
Preferred Stock Remains Key to Bitcoin Purchases
Le said Strategy plans to continue using its STRC preferred shares as a funding source for future Bitcoin purchases.
The immediate priority is returning STRC to its par value by increasing US dollar reserves. Once that happens, the company intends to issue additional preferred shares, expand its reserves further if needed, and deploy new capital into Bitcoin.
He noted that financial products often take several years to mature and said Strategy continues to adjust its approach based on investor feedback and market performance.
The comments follow Strategy’s recently introduced capital framework, which allows the company to sell Bitcoin when necessary to fund preferred share dividends, strengthen liquidity, and repurchase securities.
Earlier this month, Strategy disclosed the sale of 3,588 BTC, its largest Bitcoin disposal since adopting Bitcoin as its primary treasury reserve asset in 2020. The move sparked debate among investors who had long viewed the company as a strict buy-and-hold Bitcoin investor.
CEO Says Balance Sheet Can Handle Bear Markets
Addressing concerns about Strategy’s growing use of preferred shares and debt, Le argued that the company’s financial position remains strong.
He said Strategy has enough liquidity to cover interest obligations for years and does not expect debt to become a major concern unless Bitcoin falls into the $8,000 to $10,000 range.
“We’re not going anywhere,” Le said when asked whether Strategy would remain an active Bitcoin buyer.
He added that Strategy owns roughly 4% of all Bitcoin while the asset itself trades between $30 billion and $40 billion every day. As an example, he pointed to the company’s recent sale of around $200 million worth of Bitcoin, noting that the transaction did not negatively affect the broader market.
According to Le, the company’s objective remains unchanged: continue buying Bitcoin over the long term while building a capital structure capable of surviving both bull and bear markets.
Related: Strategy’s Bitcoin Sale Puts Saylor’s ‘Never Sell’ View in Focus
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