Strategy Charts Bitcoin Floor at $13,136 for STRC

Strategy Inc., the parent company of MicroStrategy, has published a chart to address a central risk created by its capital structure. This risk is how far Bitcoin's price could decline before the value of its bitcoin reserve equals the notional debt and preferred-stock claims included for each security.

The company stated that $BTC would have to fall 83% from current levels before STRC reaches a 1x BTC Rating, which means that under Strategy’s internal calculation, the value of its bitcoin reserve equals the notational debt and preferred-stock claims. This does not mean STRC would default or stop paying dividends once Bitcoin reached $13,136.

The company's capital update showed that it held 845,050 BTC and $6.71 billion in dollar assets as of August 30. The latest bitcoin purchase added 4,603 BTC for approximately $369.7 million at an average price of $80,318 per coin. Strategy also reported zero net leverage after the transaction.

The company's capital model has become central to its dispute with MSCI over a proposed index eligibility test. Strategy argues that its bitcoin operations constitute an active business rather than passive asset ownership.