MicroStrategy says 90% Bitcoin crash would strain debt-backed model

In a report from Beincrypto, MicroStrategy said a 90% decline in Bitcoin to roughly $8,000 would leave its Bitcoin reserves roughly equal to its net debt, marking a breaking point that could prevent repayment of convertible debt using BTC alone. Executives said the company would likely first consider restructuring, issuing additional equity, or raising new debt, and described the scenario as highly improbable that would unfold over several years, giving the firm time to respond.

The company noted this clarification does not contradict an earlier sale trigger tied to stock trading below 1x mNAV and an inability to raise capital. The firm reported large exposures and recent losses, including 713,502 BTC acquired at a total cost of about $54.26 billion, $17.4 billion in unrealized digital-asset losses for the quarter and a net loss of $12.4 billion, while raising $25.3 billion in 2025 and building a $2.25 billion reserve to cover roughly two and a half years of dividend and interest obligations.