Strategy Announced Double Coverage of Debt with Bitcoin Reserves if Asset Price Collapses to $25,000

• Strategy emphasized its financial stability with a BTC debt rating.
• The company said that if the first cryptocurrency’s exchange rate drops to $25,000, its reserves will be enough to repay the debt twice.
• Currently, BTC Rating indicates that the debt is covered by bitcoin from seven to 56 times.

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Strategy (formerly MicroStrategy) published an updated assessment of its balance sheet strength on X (formerly Twitter), noting that its convertible debt is backed by bitcoin in multiple amounts. The company called this the BTC Rating and demonstrated it for various asset price scenarios.

The company explained that the value of the first cryptocurrency’s reserves will be twice as high as the convertible debt even if the price drops to $25,000.

Currently, at $86,835, the figure is even stronger: Strategy has $8.214bn of convertible debt maturing in 2028-2032, with the majority of bonds having a BTC Rating of 7x to over 50x. The aggregate BTC Rating for all convertible debt is 6.9x.

Source: Strategy’s debt calculator. Source: Strategy.

Under the debt layer, the company has $7.779 billion of preferred shares of five series (STRF, STRC, STRE, STRK, and STRD). They have longer maturities and higher risks, but their BTC Rating is 3.5x, which also indicates a significant bitcoin-backed stock.

Strategy’s total liabilities — debt including preferred shares — reach almost $16 billion, and are currently 3.6 times secured by bitcoin.

The company stressed that these data demonstrate high capitalization, bitcoin asset leveraging, and resilience to asset price declines.

As a reminder, at the end of October 2025, Strategy received a low rating (B-) from S&P, but later the company announced $2.8 billion in net profit in the third quarter.

Nevertheless, Cantor Fitzgerald, TD Cowen, and Maxim Group have downgraded their forecasts for the company due to a decrease in the so-called Strategy bitcoin premium. According to their estimates, the average target share price has fallen to its lowest level since May, and the implementation of the company’s plans will require the asset to grow to $150,000.

However, co-founder Michael Saylor called Strategy “indestructible,” assuring: “bitcoin is stronger than ever”. According to him, the company is able to operate even if the first cryptocurrency falls by 80-90%.

At the same time, the crypto treasury company community criticized JPMorgan after the news that MSCI may exclude them from the indices in January 2026. Saylor defended Strategy, emphasizing that the company is a “bitcoin-backed structured finance company,” not a trust or fund.