Strategy CEO Phong Le says the company’s next big Bitcoin purchase is contingent on one thing: Stretch (STRC) returning to its $100 par value. In a Bloomberg interview, Le said Strategy will resume issuing STRC preferred shares—and use the proceeds to buy more Bitcoin—once the security trades back at par. STRC was trading around $87 on July 16, according to Strategy’s website, and has languished below its $100 target since April. The preferred pays a variable dividend intended to keep its market price near par, but issuing new STRC while it trades under $100 would be a less efficient fundraising tool and would dilute how much Bitcoin the company can acquire per share. Le also emphasized that rebuilding cash buffers is key to restoring investor confidence after STRC fell below $75 in late June. Strategy has increased its dollar reserves to $3 billion—funded in part by selling roughly $466 million of MSTR shares, per crypto.news—so it can meet dividend and interest obligations without leaning solely on its Bitcoin holdings. Pressure from preferred shareholders to hold more cash prompted Strategy to trim Bitcoin positions in consecutive reporting periods. Company filings show sales of 1,363 BTC for about $81 million in the week ending June 30 and another 2,225 BTC for roughly $135 million in the week ending July 6. After those sales, Strategy’s holdings stood at 843,775 BTC. Despite the reductions, Strategy still reports a larger Bitcoin stash than BlackRock’s spot Bitcoin ETF (IBIT). The company lists 843,775 BTC versus IBIT’s 733,516 BTC in the Bloomberg piece. Executive chairman Michael Saylor has reiterated the firm’s leverage arguments on X, asserting that MSTR delivers equivalent exposure to IBIT, STRC offers roughly 3.6x that exposure, and STRF provides about 11x. Market action around Strategy’s stock reflected the wider jitters. On July 16, MSTR dropped 3.65% to $93.91 while Bitcoin traded near $64,800. Technicals show MSTR punched out of a descending channel that began after its May peak near $195, but the rebound stalled in the $100–$105 zone. Near-term support sits at $90, then the late-June floor between $83 and $85. A daily close below $90 would put the recent breakout at risk; a sustained move above $100–$105 could pave the way toward $115–$120. Momentum indicators are mixed. The daily RSI is 39.16, signaling weak demand but not an oversold condition. The MACD line has crossed above its signal line and the histogram turned positive (2.17), hinting at an early recovery, though both MACD lines remain below zero—so the longer-term downtrend hasn’t been fully reversed. Bottom line: Strategy is standing pat on new Bitcoin buys until STRC recovers to par, while shoring up cash to stabilize preferred-holder confidence. That approach leaves the company positioned to scale BTC purchases once market sentiment and STRC’s price align with its preferred-stock fundraising strategy.
Strategy Hints at Future Bitcoin Buys Dependent on STRC Reaching $100 Par
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Summary
Strategy CEO Phong Le said the firm will wait on major Bitcoin buys until STRC hits $100 par. STRC has traded below $100 since April, and issuing at a discount would hurt Bitcoin acquisition efficiency. The firm raised $3 billion in cash, including $466 million from MSTR sales, to cover obligations without over-relying on Bitcoin. Strategy sold 3,588 BTC in late June and early July, leaving 843,775 BTC, still more than BlackRock’s IBIT ETF. On-chain trading signals suggest mixed momentum as MSTR fell 3.65% to $93.91 on July 16, with a risk-to-reward ratio favoring caution for near-term buyers.
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