NewsBTC
Feb 7, 2026 upd. 9 Feb

Strategy faces financial strain as Bitcoin prices drop sharply

2 min

Strategy, the largest corporate holder of Bitcoin, faces scrutiny as Bitcoin's price declines. CEO Phong Le reassures investors of the company's stability despite recent volatility.

Bitcoin Sell-Off and Financial Impact

  • Bitcoin has dropped roughly 50% from its all-time high of $126,000 in October.
  • Strategy's stock (MSTR) fell to $104, its lowest since August 2024, after a 17% drop.
  • Investors are concerned about Bitcoin's price and Strategy's financial obligations amid market downturns.

Founder Michael Saylor has prepared for a potential prolonged "Bitcoin winter" by raising a $2.25 billion cash reserve for dividend payments and managing convertible bonds worth $8.2 billion, facing potential early redemptions by September 2027.

Politics, Leverage, and Valuation

  • Saylor is open to selling Bitcoin if necessary, considering political factors like pro-crypto stances.
  • Treasury doubts federal support for Bitcoin; Secretary Bessent says he lacks authority for market rescue.
  • CEO Phong Le stated the company maintains lower leverage than typical high-yield firms.

Le noted that Bitcoin would need to decline by approximately 90% for reserves to match convertible debt value. In such cases, restructuring options would be considered. Strategy's enterprise value stands at $49.95 billion, higher than its $45.33 billion Bitcoin holdings.

If Bitcoin nears $63,000 again, Strategy's market cap of $35.57 billion would require a 13% decrease to equalize valuation with Bitcoin holdings.

After Thursday's crash, both Bitcoin and Strategy’s stock rebounded significantly. Bitcoin rose to $69,256, and MSTR climbed above $130, marking a 20% recovery within 24 hours.