Strategy states its Bitcoin holdings cover debt 5.9 times, even if BTC drops to $74,000. This is its “BTC Rating.”
Strategy stated that even if Bitcoin drops to its average cost basis of $74,000, its BTC holdings would still cover its convertible debt by 5.9 times. The company calls this ratio its “BTC Rating.” Strategy also indicated that at a BTC price of $25,000, the coverage would be at 2.0 times. Recently, Strategy was again not included in the S&P 500 Index.
Strategy with emphasis on its debt coverage. Even if $BTC falls to its $74K average cost basis, the company still has 5.9x assets. These include convertible debt. This is referred to as the BTC Rating of its debt. At $25K BTC, this coverage would still be 2.0x. This shows considerable resilience.
As of November 25, 2025, the value of the company’s Bitcoin holdings is estimated to be around $56 billion. This is in contrast to a total debt of more than $8 billion. The stocks have also declined significantly in price. This puts the company’s risk from its convertible debt even higher.
Related Reading: Crypto News: Strategy Misses The Spot On The S&P Again | Live Bitcoin News
At the current time, Strategy is holding 649,870 bitcoins. With Bitcoin’s value hovering around $86,700, the total value of these holdings came out to be about $56 billion. This is a huge asset base.
The company has accumulated a large amount of debt. This is around $8.2 billion. It is mostly through convertible notes and other financing. These funds were used for its purchases of Bitcoin.
Based off of these figures the current coverage ratio is approximately 6.8x ($56B / $8.2B). This is in contrast to the user’s query. However, this coverage is very dependent on the volatility of the price of Bitcoin.
However, market concerns are present. A major concern is possible “liquidity risk.” This is linked with the convertible debt of the company. If the price of Bitcoin were to fall, convertible debt holders could call for repayment. This would be in cash rather than in the form of equity conversion. This could put the company in the position of selling its Bitcoin holdings at depressed prices.
In January 2026, MSCI is going to decide. It will determine whether to exclude companies. These are those whose digital asset holdings are more than 50% its total assets from its indexes. Strategy balance sheet is dominated by Bitcoins. An exclusion might trigger billions in forced outflows.
Wall Street firms, such as BlackRock and JPMorgan Chase, have already reduced holdings. This is the case for Strategy shares for Q3 2025. This adds further pressure. This is particularly true now that the price of Bitcoin has dropped.
The price of stock Strategy (MSTR) has shown a very high correlation with the price of Bitcoin. The recent decline in the value of Bitcoin has played a major part in the recent decline in the stock of MSTR.
Investors have traditionally paid a premium price for MSTR shares. This was a method of obtaining leveraged exposure to Bitcoin. However, with the availability of Bitcoin ETFs, this premium is coming under growing scrutiny.
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