Strategy said it could still cover about $6 billion in net debt even if Bitcoin dropped 88% to $8,000. The company and founder Michael Saylor laid out that position in recent public statements, pointing to reserve assets, debt structure, and a plan to reshape the balance sheet over time.
Stress scenario centers on an 88% Bitcoin decline
The company said its current net debt stands near $6 billion. In the downside case it described, reserve assets would still remain close to that level even after a steep fall in Bitcoin’s price. Strategy argued that this gives it room to operate during sharp market drawdowns, while keeping its convertible notes manageable without resorting to new senior debt right away.
Convertible debt targeted for equity conversion over 3 to 6 years
Michael Saylor said Strategy intends to convert its convertible debt into equity over the next three to six years. He framed that approach as a way to reduce debt on the balance sheet by issuing stock tied to existing convertibles instead of refinancing through additional senior liabilities. The company presented the process as gradual rather than immediate.
CEO Phong Le also said recently that an 80% decline in Bitcoin would take years to materially affect operations. In his view, that period would leave time for restructuring if needed.
Company keeps buying BTC despite large unrealized losses
Strategy said it does not plan to sell its Bitcoin holdings despite current market pressure. Saylor also said the firm plans to keep buying Bitcoin every quarter. Its latest disclosed purchase totaled 1,142 BTC for about $90 million, made after prices had fallen.
The company is currently sitting on more than $5 billion in unrealized losses, and MSTR shares have also declined. Even so, the stock rose 10% on Friday after earnings. Separately, Saylor called on U.S. policymakers to consider Bitcoin reserves, drawing a comparison with gold.