Strategy claims it can weather a $8,000 bitcoin scenario and convert debt into equity.

Strategy (MSTR) said it could endure an extreme downturn in bitcoin — even to $8,000 — and still meet its roughly $6 billion in net debt obligations.

In a statement posted on X, the firm led by Michael Saylor said its bitcoin reserves would remain sufficient to fully cover outstanding debt even under a severe price drawdown scenario.

Strategy holds 714,644 BTC, currently valued at about $49.3 billion, making it the largest publicly traded corporate holder of bitcoin. Since adopting bitcoin as its primary treasury asset in 2020, the company has aggressively accumulated the cryptocurrency, frequently using debt financing to fund purchases.

The leveraged strategy has been echoed by other companies, including Japan-listed Metaplanet, which has also embraced bitcoin-backed treasury operations. Strategy’s total debt stands near $6 billion — a figure equivalent to roughly 86,956 BTC at current prices — compared with holdings more than eight times that size.

While investors applauded the approach during bitcoin’s surge to an October high above $126,000, concerns have resurfaced following the asset’s decline toward $60,000. Market participants have warned that if heavily leveraged bitcoin holders were forced to sell into weakness, additional supply could exacerbate price pressure.

Strategy pushed back against those fears, arguing that even at $8,000 per bitcoin, the value of its holdings would still approximate $6 billion, enough to offset its net debt. The company also emphasized that its debt maturities are spread out between 2027 and 2032, limiting near-term repayment risk.

To further strengthen its balance sheet, Strategy said it plans to convert portions of its existing convertible notes into equity rather than issue new senior debt. Convertible debt allows lenders to exchange bonds for company shares under certain conditions, potentially reducing leverage without increasing cash outflows.

Skeptics remain cautious. Critics such as Capitalists Exploits note that Strategy has reportedly spent about $54 billion accumulating its bitcoin stash, at an average purchase price near $76,000 per coin. A drop to $8,000 would translate into roughly $48 billion in unrealized losses — a scenario that, while technically covering debt, could significantly strain investor confidence and lender sentiment.

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