Bitcoin Must Drop 83% for Strategy's Preferred Stock to Reach Threshold

Strategy Inc.'s preferred stock, STRC, has a modeled bitcoin reserve value that equals its debt and preferred claims at a price threshold of $13,136. This is based on an internal metric known as the BTC Rating, which shows asset coverage but is not a credit rating or market price prediction. To reach this threshold, Bitcoin would need to drop by 83% from its current levels.

The company holds 845,050 BTC and $6.71 billion in dollar assets, using bitcoin as a core reserve to back its expanding capital structure, including preferred stocks and debt.

Strategy emphasizes that this model supports its long-term goal of becoming the largest public company with Bitcoin as a reserve base, while also addressing risks and ongoing MSCI index eligibility discussions.