Strategy has released an internal model showing that Bitcoin's price would need to fall 83% from its current level to $13,136 for the company's STRC security to reach a 1x BTC Rating. The rating, as defined by Strategy, measures the value of its bitcoin reserve relative to the nominal debt and preferred stock claims accounted for in that security, and is not an external credit rating.
The model also provides Bitcoin price thresholds for other securities: STRF at $1,519, STRE at $14,198, STRK at $15,857, and STRD at $17,517. The debt threshold under the model is zero. Strategy emphasized that the BTC Rating does not imply that STRC will default, stop paying dividends, or trade at a specific price.
As of August 30, Strategy held 845,050 Bitcoin and $6.71 billion in U.S. dollar assets. On August 31, the company disclosed a $152 million STRC buyback and a $30 million allocation to U.S. dollar cash, bringing that cash balance to $1.61 billion. Its most recent Bitcoin transaction added 4,603 BTC for approximately $369.7 million, at an average price of $80,318 per coin.