Strategy has moved to calm investor fears after recent pressure on its stock. The company said that even if Bitcoin falls to its average cost basis of $74,000. Its BTC holdings would still cover its convertible debt by 5.9 times. It calls this figure its “BTC Rating.” The update came through a post from the […]
Strategy has moved to calm investor fears after recent pressure on its stock. The company said that even if Bitcoin falls to its average cost basis of $74,000. Its BTC holdings would still cover its convertible debt by 5.9 times. It calls this figure its “BTC Rating.” The update came through a post from the company.
Strategy also stressed that even in a deep crash scenario, with Bitcoin at $25,000. Its holdings would still cover debt by 2.0 times. That message aimed at investors worried about rising leverage and dilution risks. This comes at a critical moment. Strategy’s stock has fallen sharply in recent months as Bitcoin cooled and sentiment around high-risk crypto plays weakened.
Based on figures shared on Strategy’s credit dashboard. The company currently holds more than $8.2 billion in total convertible debt. When preferred stock is included, total obligations rise to nearly $16 billion. Even with that large figure, Strategy says its Bitcoin holdings still provide strong coverage under current price levels.
At a modeled BTC price near $87,000, most of its convertible debt shows coverage ratios ranging from 7x to more than 50x. Even newer debt maturing in the early 2030s remains backed several times over by Bitcoin. Strategy also noted that its current models assume long-term Bitcoin growth and sustained volatility. It says these estimates show that the company still has room to manage stress scenarios. Without facing immediate solvency pressure.
Despite the reassurance, Strategy’s stock has struggled in 2025. Reports suggest the stock is down over 40% year-to-date. The decline closely tracks Bitcoin’s recent weakness and shrinking investor confidence. Several factors are driving the drop. First, Bitcoin’s pullback has reduced the value of Strategy’s main asset. Second, investors are growing cautious about the company’s repeated capital raises to buy more BTC. Third, the long-standing premium that Strategy traded at over its Bitcoin holdings has compressed sharply this year.
Dilution concerns also remain top of mind. Strategy relies heavily on preferred shares and convertible debt to fund Bitcoin purchases. While that strategy powered massive gains during bull cycles. It now raises questions in a more uncertain market. Adding to the pressure, Strategy is now caught in a heated controversy involving JPMorgan as BTC prices remain under strain. Also, Strategy was recently excluded once again from the S&P 500 Index. That move reduced automatic exposure from passive funds and added to short-term selling.
Reactions across the market remain divided. Some investors welcomed the 5.9x BTC Rating as a sign that the Strategy is prepared for turbulence. Others argue that constant public messaging may increase scrutiny and volatility. Supporters believe the company’s Bitcoin-first approach remains intact and that the current weakness is temporary.
Critics, however, continue to question how far the leverage strategy can stretch if another deep crypto winter arrives. Currently, Strategy is holding its line. The company insists that even at much lower Bitcoin prices, its balance sheet remains defended. Whether the market agrees will likely depend on what Bitcoin does next.
