Strategy’s $66 Billion Bitcoin Strategy Depends on Capital Markets, Not BTC Price: Report

A new analysis suggests that Strategy’s biggest vulnerability isn’t a potential Bitcoin price crash, but rather its ongoing reliance on capital markets to meet roughly $1.76 billion in annual financial obligations. According to analysis, the company’s Bitcoin holdings, valued at over $66 billion, sit behind approximately $22 billion in debt and preferred share claims.

Bitcoin Would Need to Fall Nearly 96% to Threaten Holdings

The report found that Strategy’s debt structure differs from a traditional margin loan, meaning falling Bitcoin prices alone wouldn’t trigger forced selling. Bitcoin would need to drop about 96% before the company’s reserves could no longer cover its convertible notes. However, the real challenge lies in consistently funding annual dividend and interest payments regardless of Bitcoin’s price movement.

Saylor’s Strategy Faces a Balancing Act

Despite years of promoting a “never-sell” approach, Strategy has sold Bitcoin four times since May to help meet financial obligations, including dividend payments and share repurchases. Company leadership maintains that these sales remain minor compared to its overall accumulation, with plans to resume larger Bitcoin purchases later this year.