Strategy CEO von Reh told investors on Thursday that the company’s balance sheet remains stable despite recent turmoil in the crypto market, but that extreme scenarios could present challenges.
The company is the world’s largest company Bitcoin ($BTC) holders say they should only consider restructuring or adding capital if the cryptocurrency falls to $8,000 and remains there for five to six years.
Maintaining balance sheet despite Bitcoin plummeting
As reported by The Block, during Strategy’s fourth-quarter earnings call, Lee emphasized that the company’s Bitcoin reserves comfortably cover its convertible debt, even after recent market losses.
“The extreme downside is that if the price of Bitcoin were to fall 90% and the price was $8,000, that would be the point where Bitcoin reserves would equal net debt, and then we would look at restructuring, issuing additional equity, issuing additional debt,” he said.
The call came after a sharp decline in the overall cryptocurrency market. $BTC The stock has fallen about 7% in 24 hours and is trading at just under $66,000 at the time of writing. Strategy stock MSTR fell 17% to $107, wiping out most of its gains since late 2025 and dropping about 72% in six months.
According to the Covisi Letter, social media analysts noted that Bitcoin has fallen by more than $10,000 in today’s trading, the first time it has fallen this much in a single day. This dramatic decline in value was part of a structural market downturn that wiped out $2.2 trillion in cryptocurrency market value since mid-October 2025.
Executive Chairman Michael Saylor also spoke on the conference call, dismissing concerns about quantum computing threats to Bitcoin as “terrible FUD” and outlining plans for security initiatives to support potential upgrades, including quantum resistance.
He reiterated that the strategy’s long-term approach is designed to withstand volatility, pointing to evolving U.S. regulations and the increasing integration of Bitcoin into credit markets and corporate balance sheets.
strategic perspective
The strategy continues to grow its Bitcoin holdings despite short-term price fluctuations. Earlier this week, the company acquired 855 companies. $BTC The average price is $75.3 million with an average price of nearly $88,000, and total inventory is over 713,500 units.
The acquisition follows the company’s $25 billion set aside in 2025 and $1.25 billion raised in early 2026, largely funded by a capital increase.
Thaler argued that the importance of Bitcoin treasury companies lies in credit optionality and institutional adoption, rather than daily price movements. According to him, the companies he owns are $BTC The ability to use assets on the balance sheet for bond issuance, lending, and financial services provides flexibility not found in ETFs.
While sentiment has deteriorated sharply in recent months, he framed these developments as part of the long-term integration of digital capital into the global financial system rather than short-term price events.
