Strategy CEO Phong Le has tied the company’s next Bitcoin purchase to STRC returning to its $100 par value as the preferred stock trades near $87.
Summary
- Phong Le linked Strategy’s next Bitcoin purchase to STRC recovering to its $100 par value.
- Strategy sold 3,588 BTC across two weeks while building its dollar reserve.
- MSTR faces resistance at $100–$105, with immediate chart support near $90.
Bloomberg reported that Le plans to resume issuing STRC shares once the security, known as Stretch, recovers to par, allowing Strategy to direct the proceeds toward more Bitcoin.
“We’ll continue to build that. And yeah, when Stretch gets back to par, we’ll issue more. We’ll buy more Bitcoin,” Le said.
Although Le did not give a timeline for the recovery, Strategy’s website showed STRC trading around $87 on July 16. The preferred stock pays a variable dividend designed to encourage trading close to $100, but its price has remained below that level since April.
STRC serves as one of Strategy’s main fundraising tools because the company can sell new preferred shares and use the capital to buy Bitcoin. Issuing STRC below par, however, would make that process less attractive and could reduce Bitcoin exposure per share.
STRC recovery controls the next Bitcoin purchase
During the Bloomberg interview, Le described cash reserves as an important part of restoring confidence in STRC after the preferred stock fell below $75 in late June. He noted that recent market conditions had shown Strategy the value of keeping liquid U.S. dollars on its balance sheet.
Strategy has since raised its dollar reserve to $3 billion after selling about $466 million of MSTR shares, according to crypto.news. The company can use that liquidity to cover dividends, interest payments and other obligations without relying entirely on its Bitcoin holdings.
Preferred shareholders had also pressed Strategy to hold more cash, Le told Bloomberg. Responding to those concerns, the company sold portions of its Bitcoin reserve in two consecutive reporting periods.
Strategy’s purchase records show that it sold 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. Following those sales, its holdings fell to 843,775 BTC.
Despite the sales, Strategy remains ahead of BlackRock’s spot Bitcoin exchange-traded fund by total holdings. Company data lists Strategy’s stash at 843,775 BTC, while the original report placed BlackRock’s IBIT holdings at 733,516 BTC.
Executive chairman Michael Saylor has also compared Strategy’s securities with IBIT. In a post on X, Saylor claimed MSTR provides the same Bitcoin exposure as IBIT, while STRC delivers 3.6 times as much and STRF offers 11 times the exposure.
MSTR holds above channel support
MSTR came under fresh pressure during the July 16 session, falling 3.65% to $93.91 even as Bitcoin traded around $64,800. The supplied daily chart shows that the stock recently escaped a descending channel formed after its May peak near $195, but the rebound stalled around the $100–$105 area.
According to the chart, $90 is the first level that could support the stock, followed by the late-June floor between $83 and $85. A daily close below $90 would place the recent channel breakout at risk, while a move through $100–$105 could open a recovery toward the $115–$120 region.
Momentum indicators still give mixed readings. The daily relative strength index stands at 39.16, showing weak demand without placing MSTR in oversold territory.
At the same time, the chart’s MACD line has moved above its signal line, and the histogram has turned positive at 2.17. Both MACD lines remain below zero, however, indicating that the early recovery signal has not yet reversed the stock’s longer decline.
