[DigitalToday reporter Yoonseo Lee] Strategy said it will not buy additional bitcoin until its preferred stock STRC recovers its $100 par value.

On July 16 (local time), blockchain media outlet Cryptopolitan reported that CEO Phong Le (퐁 레) said the company is linking the timing of buying bitcoin again to STRC’s price recovery.

The key is financing terms, not buying capacity. Strategy sees additional issuance as unfavorable while STRC, which it uses to fund bitcoin purchases, trades below its $100 par value. Phong Le said, "We will buy bitcoin when STRC returns to par," but added, "I don't know how long it will take."

Strategy has not increased its bitcoin holdings since late June. STRC has traded below $100 since mid-May and was moving around $89 on the day. Phong Le explained that building a cash buffer was a key variable in the price rebound, and that as reserves rose, STRC recovered from a low in the mid-$70s to around $90.

The company has focused on building cash rather than bitcoin in recent weeks. It issued $467 million of common stock to raise its cash balance to $3 billion, and said that level of funds is sufficient to cover two years of dividend payments. Phong Le also described the shift as "a process of Strategy transitioning from a bitcoin treasury company to a full digital capital platform."

The remarks are drawing more attention because Strategy, as the largest corporate holder of bitcoin, is not making additional purchases. Strategy held 843,775 BTC as of a July 12 U.S. Securities and Exchange Commission filing. That is close to 4 percent of the total issuance limit of 21 million coins.

Phong Le stressed that a recent $216 million bitcoin sale had a limited impact on the market. With daily bitcoin trading volume at $30 billion to $40 billion, he argued the company’s trades are not enough to shake the broader market.

There are also differing views inside and outside the market about Strategy's safety line. Nick Puckrin (닉 퍼크린), CEO of Coin Bureau, has estimated Strategy's solvency limit at around $20,000.

Behind such remarks is a difficult year for Strategy. Over the past 12 months, MSTR shares have fallen more than 77 percent, and bitcoin has also dropped 45 percent over the same period, sliding to about half of its level recorded last October. Since last month, questions have resurfaced about the debt-and-capital-funded bitcoin buying model used since 2020, as Chairman Michael Saylor (마이클 세일러) moved to reduce his holdings.

In June, Strategy introduced a "Digital Credit Capital Framework" and approved discretionary bitcoin sales of up to $1.25 billion, two $1 billion share buyback programs, and a 12 percent increase in the STRC dividend rate. The steps gave management greater discretion to move away from an all-in focus on buying bitcoin and to strengthen cash management and defend its capital structure. The company still has about $9 billion in unrealised losses on its 843,775 BTC holdings and also has $1 billion of debt maturing in 2027.

As a result, Strategy's next move is more likely to depend on whether STRC recovers its par value than on the bitcoin price itself. With additional buying by the largest corporate holder of bitcoin on pause for now, the market is watching Strategy's financing terms and cash-defence strategy together.

Strategy CEO "Will resume accumulating bitcoin after STRC recovers par value" https://t.co/D6gF1fcoSS