Despite market pressure and a steep drop in its stock, Strategy’s balance sheet remains stable — yet future funding options may narrow if conditions don’t improve
Strategy’s aggressive Bitcoin acquisition plan is under renewed scrutiny as the cryptocurrency’s recent decline brings the company’s holdings close to breakeven. The firm’s common stock has plunged nearly 70% from its peak, sparking growing speculation about its long-term financial resilience.
However, analysts note that no immediate liquidity crisis exists, and the company’s next true pressure point is still more than a year away.
Divergence Seen Across Preferred Shares
Throughout 2025, Strategy relied heavily on perpetual preferred shares to fuel additional Bitcoin purchases. Four series—STRK, STRF, STRD, and STRC—were issued, each with different yields, structures and investor protections.
STRF, the most senior series, is the only one trading above its issue price, reflecting stronger market confidence. By contrast, STRD and STRK have fallen sharply, offering double-digit yields that signal elevated risk perception.
Bitcoin Near the Breakeven Mark — But No Forced Selling
As Bitcoin slid through November, traders focused on the $74,400 level — the approximate price at which Strategy’s total Bitcoin position, accumulated over more than five years, would flip negative.
But industry experts stress that dipping below that level would not trigger margin calls or forced liquidation.
BitXJournal digital-asset strategist noted:
“This breakeven level is a psychological marker, not a structural one. Strategy’s Bitcoin is unencumbered — price alone cannot force a sale.”
The nearest true financial milestone arrives on September 15, 2027, when holders of the company’s $1 billion in 0.625% convertible notes gain their first put option. With Strategy’s stock currently below the conversion price, noteholders are more likely to request cash repayment unless the stock rebounds.
Management Still Has Several Financial Levers
Even if market sentiment worsens and Strategy’s valuation premium over its BTC reserves shrinks further, the company can still meet its annual preferred-dividend obligations.
Options include issuing more ATM common shares, selling small portions of its Bitcoin treasury, or even paying dividends in-kind through new stock issuance.
However, analysts warn these levers come with consequences.
BitXJournal market researcher said:
“Any move that signals stress — especially selling Bitcoin or issuing discounted equity — will erode investor confidence and could shut the door on future capital-raising.”
Strategy’s situation is not yet perilous. The company remains stable in the short term, and its next major liquidity test sits roughly 18 months away. But without a recovery in Bitcoin or its own share price, the firm may find itself increasingly restricted in raising capital — a critical element of its long-running accumulation strategy.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.