Strategy said its balance sheet could still cover its debt load even if Bitcoin dropped to $8,000. Founder Michael Saylor added that the company plans to turn its convertible bonds into equity over the next three to six years, instead of repaying principal in cash.
The figures were presented in Strategy’s Q4 2025 investor deck. The company said it currently holds about 715,000 BTC. At a Bitcoin price of roughly $68,000, that reserve is worth about $49 billion. Strategy also reported about $6 billion in convertible bonds, around $8.2 billion in senior convertible notes, and a $2.25 billion cash buffer earmarked to cover interest payments through 2028.
Debt coverage threshold sits near a Bitcoin price of $8,000
According to the company, its assets and liabilities would only reach parity if Bitcoin fell to around $8,000. Relative to the roughly $68,000 reference price cited in the presentation, that implies a decline of about 88%. Strategy used that scenario to argue that its current debt structure retains a large cushion even under severe market stress.
At the same time, Strategy disclosed an average Bitcoin purchase price of about $76,000. Based on the price level cited in the material, that puts the company at an unrealized loss of roughly 10% on paper. The emphasis in the presentation, though, was not on the entry price. It was on how the size of the Bitcoin holdings, the debt profile, and the cash reserve fit together.
Saylor says convertible debt is meant to migrate into equity
Saylor described the long-term plan in plain terms: over the next 3 to 6 years, the company wants its convertible debt to be fully “equitized.” In practice, that means bondholders would convert into shareholders rather than waiting for a cash repayment of principal.
Such a structure would reduce debt pressure on the balance sheet, but it would also dilute existing shareholders through new share issuance. Strategy’s message in this disclosure was clear. It sees its Bitcoin reserves, cash buffer, and planned handling of convertible debt as the key pillars supporting its current capital structure.