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Strategy’s leadership says the company can meet its debt obligations even in a severe Bitcoin downturn, while also outlining a plan to convert convertible notes into equity over the next several years. The statements come as Strategy continues to buy Bitcoin despite reporting large unrealized losses.
Michael Saylor said Strategy can withstand a steep drop in Bitcoin and still cover its debt. He stated that even if Bitcoin falls 88% to $8,000, the company would have enough assets to cover what it owes. Strategy currently reports about $6 billion in net debt.
Saylor wrote that the firm can “fully cover our debt” at that price level. A chart shared by the company indicated that the value of its Bitcoin holdings would remain close to its net debt under the scenario. The comments were made as Bitcoin trades below its recent highs.
Strategy also plans to convert its convertible notes into equity over the next three to six years. Saylor said the company intends to reduce debt by issuing shares rather than taking on new senior loans, aiming to lower balance-sheet pressure over time.
He said the existing convertible notes are manageable under current terms and that converting them into equity would reduce future repayment risk. Saylor described the approach as providing “security” during periods of market weakness.
Our plan is to equitize our convertible debt over the next 3–6 years.
Strategy CEO Phong Le said that even if Bitcoin drops 80%, it would take years for the effect to reach the company’s core operations. He said this time frame gives management room to adjust if needed.
Saylor reiterated that Strategy does not plan to sell its Bitcoin. He said the company intends to continue buying Bitcoin at least once each quarter and remains committed to its accumulation plan despite recent price pressure.
Last week, Strategy bought 1,142 Bitcoin worth about $90 million. Saylor posted his regular Bitcoin tracker update, which often signals a new purchase. The company has continued buying even as it reports more than $5 billion in unrealized losses.
Strategy’s stock rose about 10% on Friday after its earnings release, despite ongoing volatility in Bitcoin prices. Saylor also called on the United States to build a strategic Bitcoin reserve and pass laws that support digital asset growth.
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