Strategy's $13,400 BTC Floor Exposes Company's Debt Stack Sensitivities

Strategy, a Bitcoin treasury company, has defined its 'BTC Floor' as roughly $13,400. This metric is based on the Bitcoin price at which Strategy's illustrative STRC coverage ratio reaches 1.0x, according to an SEC-filed briefing.

The BTC Floor provides no claim on Strategy's Bitcoin and carries no solvency or recovery meaning. It's essential to note that this threshold is not a buffer against losses but rather a metric used for calculations.

Strategy's STRC variable-rate cumulative perpetual preferred stock closed at $97.33 on Aug. 28, giving holders a simple 12.33% effective yield at the current $12 annualized dividend. The filed dashboard used an Aug. 21 price of $96.18 and listed a 12.48% yield.