Strategy Can Fully Cover $6 Billion In Debt if Bitcoin Drops 90%, But What Happens Below That Line?

Lockridge Okoth

Sun, February 15, 2026 astatine 2:08 PM CST 4 min read

Strategy (MicroStrategy) contiguous asserted it tin afloat screen its $6 cardinal indebtedness adjacent if Bitcoin falls 88% to $8,000. However, the bigger question is what happens if the Bitcoin terms falls beneath that line?

The company’s station highlights its $49.3 cardinal Bitcoin reserves (at $69,000/BTC) and staggered convertible enactment maturities moving done 2032, designed to debar contiguous liquidation.

Only days aft its net call, Strategy has reiterated the $8,000 prospective Bitcoin terms and what would hap to the institution successful specified an lawsuit for the 2nd time.

"Strategy tin withstand a drawdown successful BTC terms to $8,000 and inactive person capable assets to afloat screen our debt," the institution stated.

At archetypal glance, the announcement signals resilience successful the look of utmost volatility. However, a deeper dive reveals that $8,000 whitethorn beryllium much of a theoretical “stress floor” than a existent shield against fiscal peril.

At $8,000, Strategy’s assets adjacent its liabilities. Equity is technically zero, but the steadfast tin inactive grant indebtedness obligations without selling Bitcoin.

"Why $8,000?: This is the terms constituent wherever the full worth of their Bitcoin holdings would astir adjacent their nett debt. If BTC stays astatine $8,000 long-term, its reserves would nary longer screen its fiscal obligations done liquidation," capitalist Giannis Andreou explained.

Convertible notes stay serviceable, and staggered maturities springiness absorption breathing room. The firm’s CEO, Phong Le, precocious emphasized that adjacent a 90% diminution successful BTC would unfold implicit respective years, giving the steadfast clip to restructure, contented caller equity, oregon refinance debt.

“In the utmost downside, if we were to person a 90% diminution successful Bitcoin terms to $8,000, which is beauteous hard to imagine, that is the constituent astatine which our BTC reserve equals our nett indebtedness and we’ll not beryllium capable to past wage disconnected of our convertibles utilizing our Bitcoin reserve and we’d either look astatine restructuring, issuing further equity, issuing an further debt. And fto maine punctual you: this is implicit the adjacent 5 years. Right, truthful I’m not truly disquieted astatine this constituent successful time, adjacent with Bitcoin drops,” said Le.

Yet beneath this header fig lies a web of fiscal pressures that could rapidly intensify if Bitcoin drops further.

The archetypal cracks look astatine astir $7,000. Secured loans backed by BTC collateral breach LTV (Loan-to-Value ratio) covenants, triggering demands for further collateral oregon partial repayment.