Strategy (MSTR) said it could endure a severe bitcoin downturn to $8,000 and still meet its roughly $6 billion in net debt obligations.
In a post on X, the company led by Michael Saylor stated that even under an extreme price collapse, the value of its bitcoin reserves would be sufficient to fully cover outstanding debt.
Strategy currently holds 714,644 BTC, worth about $49.3 billion at prevailing prices, making it the largest publicly traded corporate holder of bitcoin. Since pivoting to a bitcoin-centric treasury strategy in 2020, the firm has steadily increased its position, frequently issuing debt to finance additional purchases.
That approach, echoed by firms such as Tokyo-listed Metaplanet, proved popular during bitcoin’s surge to an October high above $126,000. However, as prices retraced toward $60,000, concerns resurfaced about the risks tied to leveraged accumulation.
Strategy’s total debt stands near $6 billion — equivalent to roughly 86,956 BTC at current market prices — a fraction of its overall holdings. The company argued that even if bitcoin were to fall to $8,000, the remaining value of its stash would still approximate $6 billion, theoretically matching its net liabilities.
It also highlighted that its debt maturities are staggered between 2027 and 2032, easing immediate refinancing pressure. In addition, Strategy said it intends to convert portions of its outstanding convertible notes into equity instead of issuing more senior debt. Such a move would allow creditors to exchange bonds for shares under certain conditions, potentially lowering leverage without increasing cash obligations.
Critics remain cautious. Observers such as Capitalists Exploits note that Strategy reportedly spent about $54 billion accumulating its bitcoin holdings, with an average purchase price around $76,000 per coin. A drop to $8,000 would translate into approximately $48 billion in unrealized losses — leaving the balance sheet technically solvent but potentially strained in the eyes of investors and lenders.
