Strategy Says Bitcoin Holdings Would Still Cover Its Debt Even if BTC Falls to $21K

BitcoinWorld Strategy Says Bitcoin Holdings Would Still Cover Its Debt Even if BTC Falls to $21K Strategy, the business intelligence firm formerly known as MicroStrategy, has stated that its outstanding corporate debt and preferred stock would remain fully backed by its Bitcoin holdings even if the cryptocurrency’s price were to fall to $21,000.

The disclosure, made in a recent regulatory filing, underscores the company’s confidence in its treasury strategy, which has made it the largest corporate holder of Bitcoin.

How Strategy’s Debt Coverage Works Strategy has financed its Bitcoin acquisitions through a combination of convertible notes, senior secured debt, and preferred stock.

The company’s filing outlines that its Bitcoin holdings—currently valued at billions of dollars—would still exceed the total face value of its debt obligations at a Bitcoin price of $21,000.