MSTR Stock Price Prediction as Phong Le Says Strategy Won’t Buy Bitcoin Until STRC Hits $100 Par

Strategy (NASDAQ: MSTR) stock price dropped by 0.11% on June 16 to close trading at $97. This drop comes as Strategy’s CEO, Phong Le, announces that Strategy will not purchase more Bitcoin until the STRC preferred stock reclaims its $100 par value.

Strategy CEO Reveals Key Condition for Strategy to Resume Bitcoin Buys

While speaking in an interview with Bloomberg, Le said that Strategy is committed to getting STRC back to its par value of $100 so it can buy 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.

However, he also admitted that he does not know how long it could take for STRC to get back to $100, considering that it closed trading at $87 on July 15.

Le also said that Strategy sold Bitcoin after preferred shareholders, such as those holding STRC, opined that the company needs to have liquid cash on its balance sheet.

Strategy is also selling shares to raise more cash after it sold $466 million worth of MSTR shares to increase its USD reserve to $3 billion.

Still, a recent MSTR stock price analysis by CoinGape noted that analysts are concerned that the demand for STRC shares could drop if Strategy continues to sell more Bitcoin.

This is because those who were buying MSTR and STRC stocks were seeking exposure to Bitcoin but this exposure is dropping as Strategy keeps selling more coins.

MSTR Stock Price Outlook as Drop Below $90 Looms

MSTR stock is facing selling pressure despite Bitcoin gaining to $64,800 today, July 16.

A surge in Bitcoin price usually causes gains for crypto stocks like COIN and CRCL stocks that gained by 3.5% and 3.9%, respectively, on July 14.

However, MSTR stock price dropped by 0.35% on July 14, suggesting that the selling pressure is more than the buying pressure.

If this selling pressure remains high, Strategy shares could drop to the 61.8% Fib of $96. The stock had already dropped below this Fib level during pre-market trading today, July 16.

Closing below the support of $96 could lead to another drop to the 23.6% Fib of $87.

But the RSI reading of 54 suggests that the momentum is favoring bulls. If this RSI creates a higher high, it could invalidate the bearish thesis, and MSTR stock price could reach the psychological resistance of $100.

Saylor Says MSTR Offers the Same BTC Exposure as IBIT

Strategy’s executive chairman, Michael Saylor, has said that investors holding the MSTR stock have the same amount of exposure to Bitcoin as those holding BlackRock’s IBIT ETF.

In an X post, Saylor added that Strategy’s STRC stock offers 3.6 times more exposure to bitcoin than IBIT does, while STRF offers 11 times more exposure.

Saylor’s outlook comes as BlackRock trails behind Strategy in terms of Bitcoin holdings with its stash of 733,516 BTC while Strategy holds 843,775 BTC.