Strategy Reveals BTC Price Threshold for STRC to Reach 1x Rating

Strategy Inc., the Nasdaq-listed company behind the popular 'MSTR' ticker, has released a chart showing how far Bitcoin's price would need to fall before its reserve-backed security, STRC, reaches a 1x BTC Rating. According to the company's internal calculation, this threshold is $13,136, which represents an 83% decline from current levels.

The 1x BTC Rating means that the value of Strategy's Bitcoin reserve matches the notional debt and preferred-stock claims included for each security. A rating above 1x indicates that the modeled Bitcoin value exceeds those claims, but it does not necessarily mean that STRC would default or trade at a particular price.

The chart also shows that other securities have different thresholds, ranging from $1,519 to $17,517. Strategy's capital structure is designed to provide substantial modeled asset coverage, with the company holding 845,050 BTC and $6.71 billion in dollar assets as of August 30.