Strategy Liquidation Only危险ous at Bitcoin Price of $8,000

Despite Bitcoin's significant price drop below the average entry price of $76,027, Strategy remains in a secure position. The company currently holds 717,131 Bitcoin on its balance sheet and has taken on debt to finance part of its purchases.

CEO Phong Le recently clarified that only a Bitcoin price of around $8,000 would become problematic – this would represent a decline of more than 88 percent from current levels ^[1]. At this price, the Bitcoin holdings would just barely cover the net debt of $6 billion, which results from $8.25 billion in convertible bonds minus a $2.25 billion cash reserve.

Crucially, Bitcoin would not only have to fall to this level temporarily, but would need to remain there until 2032, as the convertible bonds mature between 2028 and 2032. Michael Saylor stated in a CNBC interview that Strategy could refinance the debt in an emergency if necessary, though this claim was met with skepticism.

Strategy currently has a debt ratio of only 12 percent, below the average of S&P 500 companies ^[1]. The company primarily raises capital through the issuance of common stock – more than $3.5 billion since the beginning of this year alone.