u.today
26 November 2025 09:42, UTC
Strategy (formerly MicroStrategy) recently took to the X social media network to emphasize that even if Bitcoin ($BTC) fell to $74,000, it would have 5.9x coverage over its convertible debt. Even at $25,000 per $BTC, coverage would still be 2x.
Bitcoin is currently trading at $87,567, according to CoinGecko data.
This was clearly meant to reassure investors but was interpreted as implicitly acknowledging vulnerability.
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The common assumption is that the company might be more exposed to $BTC volatility than it publicly claims.
They are preparing for bear market strategy already 💀 https://t.co/eQfHDoF9jf
— Ritesh (@Ritesh_Trades) November 25, 2025
Is Saylor getting nervous? https://t.co/cSDo3iitI8
— Ted (@TedPillows) November 25, 2025
MicroStrategy’s Bitcoin holdings are far larger than its convertible debt. This means the company’s Bitcoin acts as a massive cushion, and they would not be forced to sell immediately even in a sharp downturn.
Much of the debt is convertible or long-dated, which gives MicroStrategy time to ride out volatility, rather than having to liquidate assets at a loss.
Analysts note that the company has substantial non-$BTC assets and cash flow from its business operations.
Even if Bitcoin temporarily loses value, the company can service debt with operating revenue without selling $BTC.
