Strategy told investors that Bitcoin would need to fall to around $8,000 before its holdings no longer cover net debt, even as paper losses linked to the price slump exceed $10 billion.
The Michael Saylor-led firm holds 713,502 Bitcoin bought at an average price of $76,052, with current prices placing the value of those holdings about $10 billion below cost.
Strategy said its Bitcoin would fail to cover net debt only in an “extreme scenario” near $8,000, adding that the assets are unencumbered and not pledged as collateral, limiting the risk of forced selling.
“We raised $25.3 billion of capital in 2025 to advance our Bitcoin treasury strategy,”
Said president and chief executive, Phong Le, adding that the company remains focused on expanding its digital credit programme in 2026.
Chief financial officer Andrew Kang said Strategy’s capital structure is “stronger than in previous cycles,” citing a $2.25 billion reserve fund covering more than two years of dividend and interest payments.
The disclosure came alongside fourth-quarter results showing an operating loss of $17.4 billion and a net loss of $12.6 billion for common shareholders due to unrealised Bitcoin losses under fair value accounting.
With Bitcoin trading in the low $60,000 range and the stock at a discount to net asset value, analysts said prolonged weakness could still test investor confidence across the crypto treasury sector.
At the time of reporting, Bitcoin price was $65,851.38.