Strategy Says Even a Bitcoin Crash to $25,000 Wouldn’t Break Its Balance Sheet

Core Insights - The company maintains a strong assets-to-debt collateral ratio of 2.0x even if Bitcoin falls to $25,000, significantly below its average purchase price of $74,000 [1][3] - The company's stock has declined by 49% and faces potential exclusion from MSCI indices, with a decision expected by January 2026 [1] - The company emphasizes its balance sheet strength, with a "BTC Rating" indicating that at $74,000 Bitcoin, assets would be 5.9 times greater than convertible debt, and at $25,000, the ratio remains at 2.0x [2][3] Financial Structure - The company has a total convertible debt of $8.214 billion, with maturities from 2028 to 2032, and a BTC Rating for this debt ranging from 7x to over 50x, averaging 6.9x [4] - Preferred stock amounts to $7.779 billion across five series, with a BTC Rating of 3.6x, indicating a solid collateral cushion relative to convertible debt [5][6] - Total obligations, including debt and preferred stock, amount to $15.993 billion, supported by a consolidated BTC Rating of 3.6x, meaning the company holds more than three and a half times the value of its obligations in Bitcoin-denominated assets [6] Market Position - The company is exceptionally well-capitalized and overcollateralized by a substantial Bitcoin buffer, providing significant financial stability and strategic flexibility [7] - It holds 649,870 BTC valued at $56.99 billion, making it the largest corporate holder of Bitcoin globally [7]