Strategy Sets $13,400 'BTC Floor' Amid Stress Management Efforts
Strategy, a company backed by Michael Saylor's Microstrategy, has set a 'BTC Floor' of approximately $13,400 for its variable-rate cumulative perpetual preferred stock, STRC. This metric measures the Bitcoin price at which Strategy's illustrative STRC coverage ratio reaches 1.0x. However, it does not provide any claim on Strategy's Bitcoin and carries no solvency or recovery meaning.
The STRC closed at $97.33 on August 28, giving holders a simple 12.33% effective yield at the current $12 annualized dividend. The company's dashboard used an August 21 price of $96.18 and listed a 12.48% yield, $9.972 billion notional, 59 basis points of BTC Credit, 4.68% BTC Risk, and a -14.61% BTC Floor ARR.
The 'BTC Rating' is calculated by dividing the dollar value of Strategy's Bitcoin reserve by a covered-notional denominator. The floor reverses this calculation: covered notional divided by the number of Bitcoin held. Spot Bitcoin changes the displayed rating; with every company input fixed, it leaves the 1.0x price unchanged.
Strategy's denominator starts with $6.714 billion of debt, subtracts $6.69 billion of USD assets, then adds $1.284 billion of senior STRF and $9.972 billion of STRC. This produces about $11.28 billion. Its 840,447 Bitcoin were worth $64.718 billion at the dashboard's $77,004 price, producing 5.74x, displayed as 5.7x.
The company reports an unrounded floor of $13,415. Using the rounded denominator and Bitcoin count gives about $13,421, both commonly shown as roughly $13,400. With Bitcoin market data at $78,440.50 during the August 30 research pass, the rating would rise to about 5.84x if the dated company inputs stayed fixed, while the floor would remain near $13,421.
USD assets move the threshold. Depleting the $1.59 billion USD Cash pool without reducing debt or preferred notional would lift the modeled point to about $15,313. Depleting all $6.69 billion of USD assets on uses that retired no counted claims would push it toward $21,381.