MicroStrategy CEO says Bitcoin’s drop to $8,000–$10k is when you should start worrying

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Deep Tide TechFlow news: On July 16, according to CoinDesk, MicroStrategy CEO Phong Le said the company feels “very safe” about its balance sheet unless the price of Bitcoin falls into the $8,000 to $10,000 range. Based on the current Bitcoin price of about $64,500, that drawdown would be roughly 85%.

Le emphasized that adding U.S. dollar reserves is an important lever driving the preferred stock STRC back up to around $90. STRC is designed to maintain a $100 par value, but it fell below that level in April and dropped to under $75 at the end of June. When the stock price is below $100, it limits the company’s ability to issue new shares to buy Bitcoin. MSTR closed down nearly 6% Tuesday to $97.58, down about 36% year-to-date.

BTC-0.31%
STRC0.03%
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