Strategy, formerly known as MicroStrategy, has presented an updated assessment of its balance sheet resilience, emphasizing that its convertible debt is backed by Bitcoin reserves in multiple amounts. The company has implemented its own financial strength metric — BTC Rating, which demonstrates the ratio of Bitcoin assets to debt obligations across various price scenarios.
This is reported by Business • Media
BTC Rating: Assessment of the Company’s Financial Security
Strategy reported that even if the price of Bitcoin drops to $25,000, the company will be able to double cover its convertible debt with its own reserves. Currently, with the price of Bitcoin at $86,835, the BTC Rating for most bonds ranges from 7 to over 50 times. The overall BTC Rating across all convertible debt is 6.9x.
“If the price of Bitcoin falls to our average cost of $74,000, we will still have a 5.9 times asset-to-convertible-debt ratio, which we call the BTC Rating of our debt. At an asset price of $25,000, this ratio will be 2.0,” said Strategy.
The total amount of the company’s convertible debt obligations is $8.214 billion, with maturities in 2028–2032. Additionally, Strategy holds $7.779 billion in preferred shares across five series (STRF, STRC, STRE, STRK, STRD), which have longer terms and higher risk, but here too the BTC Rating is 3.5x.
Obligations and Prospects Amid Market Volatility
The total debt obligations of the company, including preferred shares, amount to nearly $16 billion. Currently, these obligations are covered by Bitcoin at a rate of 3.6 times, indicating significant capitalization and Strategy’s ability to withstand even substantial declines in cryptocurrency value.
Despite a strong financial position, in October 2025, Strategy received a low rating (B-) from S&P, but soon announced a net profit of $2.8 billion in the third quarter. At the same time, analysts from Cantor Fitzgerald, TD Cowen, and Maxim Group lowered their forecasts amid a reduction in the so-called Bitcoin premium of the company. According to their estimates, the average target price for Strategy’s shares has fallen to lows not seen since May, and the realization of the company’s future plans requires an increase in the price of Bitcoin to $150,000.
Co-founder Michael Saylor responded by stating that Strategy is “indestructible” and capable of operating even with an 80–90% drop in the price of Bitcoin. He assured that Bitcoin remains “stronger than ever.”
Additionally, within the cryptocurrency community, JPMorgan was criticized following news of a potential exclusion from MSCI indices in January 2026. Saylor emphasized that Strategy is a “structured financial company backed by Bitcoin,” not a trust or investment fund.
