This means that even if BTC’s price were to suffer an 88% collapse from current levels, Strategy’s Bitcoin holdings would theoretically still be sufficient to cover its outstanding debt obligations on paper.
No Immediate Liquidation Risks For StrategyStrategy’s borrowings are primarily low-interest convertible notes with staggered maturities and put dates stretching between 2027 and 2032. These are not margin loans secured by BTC that trigger automatic liquidations if BTC falls.
A BTC collapse to $10,000 would represent an extreme crash of 85% to 90% from recent levels. Although Strategy’s model suggests it could technically cover its net debt at $8,000 per BTC, such a scenario would dramatically shrink the value of its equity from $48.5 billion to less than $6 billion.
