Strategy moved to ease investor concerns following recent pressure on its stock. The company stated that even if Bitcoin drops to its average cost basis of $74,000, its BTC holdings would still cover its convertible debt 5.9 times—a figure it calls its “BTC Rating.” The update was shared via a company post.
Strategy is working to calm investor concerns after recent stock pressure. The company emphasized that even in a severe downturn, with Bitcoin dropping to $25,000, its holdings would still cover convertible debt by 2.0 times—addressing worries about rising leverage and dilution risks. This comes as Strategy’s stock has fallen sharply in recent months amid a cooling Bitcoin market and weakened sentiment around high-risk crypto plays.
Inside Strategy’s Debt and Bitcoin Coverage
According to figures from Strategy’s credit dashboard, the company currently holds over $8.2 billion in convertible debt. Including preferred stock, total obligations rise to nearly $16 billion. Even with these sizable liabilities, Strategy says its Bitcoin holdings provide strong coverage at current prices.
At a modeled Bitcoin price near $87,000, most convertible debt shows coverage ratios between 7x and more than 50x. Even newer debt maturing in the early 2030s is backed multiple times over by Bitcoin. Strategy noted that its models assume long-term Bitcoin growth and sustained volatility, showing the company has room to manage stress scenarios without facing immediate solvency pressure.
Stock Pressure Grows After Bitcoin Pullback
Despite these reassurances, Strategy’s stock has struggled in 2025, reportedly down over 40% year-to-date. The decline mirrors Bitcoin’s recent weakness and shrinking investor confidence. Contributing factors include the reduced value of Strategy’s main asset, investor caution over repeated capital raises to acquire more BTC, and a compressed premium over its Bitcoin holdings.
Dilution remains a concern, as the company relies heavily on preferred shares and convertible debt to fund Bitcoin purchases—a strategy that fueled gains in previous bull cycles but now raises questions in a more uncertain market. Additional pressure comes from ongoing controversy with JPMorgan, continued BTC price weakness, and Strategy’s exclusion from the S&P 500 Index, which reduced passive fund exposure and triggered short-term selling.
Supporters Stay Calm, Critics Remain Watchful
Market reactions are divided. Some investors welcomed the 5.9x BTC Rating as a sign that Strategy is prepared for turbulence, seeing the Bitcoin-first approach as intact and the current weakness as temporary. Critics, however, question how far the leverage strategy can stretch if another severe crypto downturn occurs.
For now, Strategy insists its balance sheet remains defensively positioned, even at much lower Bitcoin prices. Whether the market agrees will likely depend on Bitcoin’s next moves.
