Strategy Sets $13,400 Bitcoin Floor for Preferred Stock
Strategy, the Bitcoin treasury company founded by Michael Saylor, has defined a 'BTC Floor' of around $13,400 for its variable-rate cumulative perpetual preferred stock STRC. At current prices, this figure appears to be a buffer, but it actually represents the price at which Strategy's illustrative STRC coverage ratio reaches 1.0x. The metric does not provide any claim on Strategy's Bitcoin or guarantee solvency.
The BTC Floor is derived from Strategy's assets and counted claims, including debt of $6.714 billion, USD assets of $6.69 billion, senior STRF worth $1.284 billion, and preferred stock STRC with a notional value of $9.972 billion. At the Aug 21 price of $96.18 per BTC, this calculation resulted in a floor of approximately $13,421.
Strategy's Bitcoin reserve was valued at around $64.718 billion at the same time, producing a coverage ratio of 5.74x, or 5.7x when rounded. If current market data is applied to fixed company inputs, the rating would rise to about 5.84x and the floor remain near $13,421.