Strategy’s Bitcoin reserves cover the debt, and only a prolonged decline to $8,000 could possibly force a restructuring.
The strategy’s CEO Phong Le told investors on Thursday that the company’s balance sheet remains stable despite recent crypto market turmoil, although extreme scenarios could pose challenges.
The company, the world’s largest holding company of Bitcoin (BTC), says it would only need to consider restructuring or additional capital if the cryptocurrency fell to $8,000 and stayed there for five to six years.
The balance sheet holds despite the sale of Bitcoin
According to a report from The Block, Le, speaking during Strategy’s fourth-quarter earnings call, highlighted that even after recent market losses, the company’s Bitcoin reserves comfortably cover its convertible debt.
“In an extreme decline, if we were to have a 90% drop in the price of Bitcoin and the price was $8,000, our Bitcoin reserve would be equal to our net debt, and then we would consider restructuring, issuing additional equity, issuing additional debt,” he said.
The call came after a sharp sell-off in crypto markets, with BTC down around 7% in 24 hours, trading at just under $66,000 at the time of writing. Strategy stock MSTR slipped 17% to $107, erasing much of its late 2025 gains and leaving it down about 72% over six months.
Social media analysts noted that today’s session saw Bitcoin fall by more than $10,000, the first time it has fallen by such an amount in a single day, according to the Kobeissi Letter. The dramatic loss in value was part of a structural market downturn that wiped out $2.2 trillion in crypto market value since mid-October 2025.
Executive Chairman Michael Saylor also spoke on the call, dismissing concerns about quantum computing threats to Bitcoin as “horrible FUD” and outlining plans for a security initiative to support potential upgrades, including quantum resistance.
He reiterated that the strategy’s long-term approach is designed to withstand volatility, highlighting favorable regulatory developments in the United States and the increasing integration of Bitcoin into credit markets and corporate balance sheets.
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Strategic outlook
The strategy continues to expand its Bitcoin holdings despite short-term price fluctuations. Earlier this week, the company acquired 855 BTC for $75.3 million at an average price near $88,000, bringing its total reserves to over 713,500 units.
This purchase follows a $25 billion buildup in 2025 and a $1.25 billion purchase in early 2026, funded largely by capital raises.
Saylor argued that the importance of Bitcoin cash companies lies in credit option and institutional adoption rather than daily price action. According to him, companies holding BTC on their balance sheet can leverage their assets for debt issuance, lending or financial services, giving them flexibility that ETFs lack.
Although sentiment has deteriorated sharply in recent months, he has framed these developments as part of a long-term integration of digital capital into global financial systems, rather than a short-term price event.
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