Michael Saylor, founder of Strategy, confirmed that the company can withstand further drops in Bitcoin (BTC) prices and detailed a multi-year plan to manage its $6 billion in convertible bond debt.
In posts on X, the firm stated,
“Strategy can withstand a drawdown in BTC price to $8,000 and still have sufficient assets to fully cover our debt.”
Saylor emphasized that the firm has no intention of selling its BTC reserves and intends to continue purchases each quarter.
Our plan is to equitize our convertible debt over the next 3–6 years. https://t.co/yRsCuCRNHl
— Michael Saylor (@saylor) February 15, 2026
Equitizing convertible debt over three to six years
Saylor explained that the plan is to convert the firm’s $6 billion in convertible bonds into equity over the next three to six years. This plan lowers the company's liabilities by giving stock to bondholders instead of cash, which makes them shareholders. While this lowers repayment pressure, it carries the risk of diluting existing shareholders.
He added that even if Bitcoin loses 80% of its value, it would take years for such a drop to affect the company’s business, allowing time to restructure and cover debts.
Bitcoin reserves and current losses
Strategy holds approximately 714,644 BTC, valued at about $49 billion at current market prices, according to its website. The firm’s average purchase price is around $76,000 per coin, meaning it is currently down roughly 10% on its aggregate position. BTC would need to fall about 88% for the value of the reserves to match its convertible debt.
Despite the unrealized losses, Strategy continues to accumulate. Last Monday, the firm purchased 1,142 BTC worth approximately $90 million. Saylor’s Bitcoin tracker posts on X frequently hint at upcoming acquisitions, and another buy could mark 12 consecutive weeks of accumulation.
Stock performance amid market volatility
According to Google Finance, Strategy’s stock (MSTR) climbed 8.8% last Friday to $133.88, following a brief Bitcoin recovery to $70,000. The company's stock is still about 70% below the all-time high of $456 in mid-July. This is because the BTC market as a whole is weak, with prices dropping about 50% since early October.
The company’s approach highlights confidence in its long-term strategy and ability to withstand price swings. Saylor has consistently maintained that Bitcoin forms a central part of the company’s strategic reserve. He recently suggested that the United States should embrace BTC in the same manner as gold and implement pro-Bitcoin legislation to support innovation.
Future outlook
Strategy’s debt plan and continued BTC accumulation demonstrate a calculated approach to market volatility. Converting debt to equity over several years and maintaining a large Bitcoin reserve provide the firm with flexibility. Saylor’s ongoing purchases and public statements indicate a commitment to holding BTC long-term and using the firm’s position to advocate for broader adoption.
Even amid sharp market fluctuations, Strategy appears prepared to meet obligations and continue expanding its BTC holdings. By equitizing debt and maintaining steady accumulation, the company signals resilience in an environment of persistent price swings.
Anastasiia G
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