Strategy can cover $6B debt at $8,000 BTC, but risks grow below

Strategy (MicroStrategy) says it can fully cover its $6 billion debt if Bitcoin falls about 88–90% to $8,000, citing $49.3 billion in Bitcoin reserves (valued at $69,000/BTC) and staggered convertible note maturities running through 2032 to avoid immediate liquidation.

At an $8,000 BTC price the company’s assets roughly equal its liabilities and equity would be technically zero, yet convertibles remain serviceable. Investor Giannis Andreou notes that $8,000 is the point where reserves equal net debt, and CEO Phong Le has argued a decline of that magnitude would likely play out over several years, giving management time to restructure, issue equity, or refinance.

Stress intensifies below $8,000. Around $7,000, BTC-backed loans could breach loan-to-value covenants, triggering demands for extra collateral or partial repayment; Capitalist Exploits warns cash reserves could deplete rapidly and forced sales might depress BTC further.

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