Strategy CEO Says Bitcoin Conviction Helped Firm Survive Crises

TLDR

• Strategy CEO Phong Le said Bitcoin conviction helped the company survive repeated near-death experiences.
• Strategy shares rose after the company announced buybacks, BTC monetization, and higher STRC dividends.
• Strategy raised STRC’s annual dividend rate to 12% under its new capital framework.
• Ripple CEO Brad Garlinghouse criticized Strategy’s leveraged Bitcoin model while staying bullish on Bitcoin.
• CryptoQuant said Strategy should pause Bitcoin purchases and rebuild its cash reserve.

Strategy CEO Phong Le said the company’s long-term belief in Bitcoin has helped it survive repeated periods of stress, even as critics question its leveraged Bitcoin accumulation model and preferred stock structure.

Speaking in a June 19 interview, Le said the company’s history since 1989 has included several difficult periods that tested its leadership and strategy. He compared Strategy’s path with companies such as Amazon and Tesla, which faced deep investor doubt before becoming larger public companies.

Le said, “Great companies have all survived near-death experiences,” while describing downturns as moments that build resilience rather than simply damage balance sheets. His comments came as Strategy faced renewed pressure over Bitcoin losses, STRC weakness, and questions about its cash reserve coverage.

Phong Le Defends Strategy’s Bitcoin Strategy

Le said Strategy’s conviction in Bitcoin grew stronger after the 2022 crypto bear market. He said that period helped shape the company’s leadership team and reinforced its decision to treat Bitcoin as a main treasury reserve asset.

Strategy now holds more than 843,000 BTC, making it the largest publicly traded corporate Bitcoin holder. The company’s position represents a major share of all Bitcoin held by public companies, which keeps its treasury actions under close market attention.

Le acknowledged the challenge of seeing large unrealized losses during market downturns. However, he said Strategy continues to focus on its long-term Bitcoin thesis rather than short-term price changes.

His comments followed growing debate over whether Strategy should keep buying Bitcoin, rebuild cash, sell some BTC, or use other tools to support its preferred securities.

Strategy Shares Rise After Capital Framework

Strategy shares rose after the company unveiled a new Digital Credit Capital Framework. MSTR recently traded at $84.77, up 2.99%, while Walter Bloomberg reported that Strategy shares rose 6.5% in premarket trading after the announcement.

The new framework includes a Bitcoin monetization program, up to $1 billion in Digital Credit Securities repurchases, up to $1 billion in MSTR buybacks, and a higher STRC dividend rate.

Strategy raised the STRC annual dividend rate from 11% to 12%. The company said the move is part of a broader plan to improve liquidity, strengthen preferred securities, and support confidence in its capital structure.

The framework also allows Strategy to sell Bitcoin when management decides that BTC monetization is more attractive than issuing common equity. The company said Bitcoin sales could fund reserves, dividends, interest payments, or buybacks.

Garlinghouse Questions Leveraged Bitcoin Model

Ripple CEO Brad Garlinghouse criticized Michael Saylor’s leveraged Bitcoin strategy, while also saying he remains bullish on Bitcoin itself. He said long-term digital asset value should come from utility rather than financial engineering.

Garlinghouse described STRC trading far below its $100 par value as a “damning indictment” of Strategy’s financing model. STRC had recently traded at a deep discount to par during market stress.

He said, “Financial engineering doesn’t create long-term value,” while contrasting Strategy’s funding model with Ripple’s focus on payments, XRP Ledger technology, and the RLUSD stablecoin.

Ripple also reported more than $70 million in charitable contributions during 2025. The company said its partnership with Accion Opportunity Fund helped provide more than $53 million in financing to underserved small-business owners.

CryptoQuant Says Strategy Should Rebuild Cash

CryptoQuant said Strategy should stop buying Bitcoin for now and rebuild its cash reserve. The firm said STRC fell sharply below par as Bitcoin weakened and Strategy’s cash buffer declined.

CryptoQuant said Strategy’s USD cash reserve had fallen 38% since the start of 2026, while annualized dividend obligations had grown to about $1.2 billion. It said dividend coverage fell from more than seven years to about 14 months.

Source: CryptoQuant

The firm said rebuilding the cash reserve to about $2.8 billion, or roughly 24 months of coverage, would be important for STRC recovery. It also said forced Bitcoin sales at current prices could lock in large losses because many recent purchases remain underwater.

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