Michael Saylor: Strategy Can Withstand 88% Bitcoin Drop to $8,000

Michael Saylor says his Bitcoin-focused firm, Strategy, is positioned to withstand a severe market downturn.

According to Saylor, the company could continue meeting its obligations even if Bitcoin’s price dropped to $8,000.

His remarks come amid renewed volatility in the crypto market. As Bitcoin faces sustained selling pressure, scrutiny has intensified around corporations with leveraged exposure to the asset. Strategy’s leadership has responded by emphasizing the firm’s financial resilience and long-term planning.

• Strategy claims it can meet obligations even if Bitcoin drops to $8,000, demonstrating resilience to extreme market swings.
• The company holds $6 billion in net debt, structured to remain serviceable during prolonged downturns.
• Strategy plans to convert convertible notes into equity over 3–6 years, reducing debt without adding new senior obligations.
• The firm currently holds 714,644 BTC ($48.86 billion), making it the largest corporate holder of Bitcoin.

In a post on X, Saylor pointed to Strategy’s balance sheet structure. The company reports approximately $6 billion in net debt and presented internal analysis suggesting that even an 88% decline in Bitcoin’s price would leave the value of its reserves roughly aligned with that liability.

Within this context, Saylor outlined a multi-year plan to strengthen the balance sheet. Over the next three to six years, Strategy intends to convert its outstanding convertible notes into equity. By issuing shares rather than adding new senior debt, the company expects a steady reduction in liabilities.

Saylor emphasized that existing convertible notes remain serviceable under current conditions. Management argues that this structure provides flexibility during prolonged downturns while limiting near-term repayment pressure.

Strategy chief executive officer Phong Le addressed a similar scenario during a recent earnings call. He noted that even if Bitcoin were to lose 80% of its value, it would likely take years for such a decline to have a material effect on operations. That extended window, he said, would allow the company to restructure and manage obligations if required.

Alongside its risk management messaging, Strategy reaffirmed its long-term accumulation strategy. Saylor stated that the company has no plans to sell its Bitcoin holdings and intends to continue acquiring the asset at least once per quarter.

Recent activity reflects that commitment. Last Monday, Strategy purchased 1,142 BTC for roughly $90 million, bringing total holdings to 714,644 Bitcoins. At the time of publication, those reserves were valued at nearly $48.86 billion, making Strategy the largest known corporate holder of Bitcoin.

Even as the market declines, the buying pattern appears intact. Michael Saylor posted his regular Bitcoin tracker update yesterday, signaling that another acquisition may be announced soon. This stance is notable given that the company is currently facing more than $5 billion in unrealized losses.

As of this writing, Bitcoin was trading at $68,353. The cryptocurrency had fallen 2.7% over the previous 24 hours and 28% over the past month.