Even if bitcoin falls to $8,000, Strategy says it will remain solvent and shift debt into equity.

Strategy (MSTR) said it would remain able to service its roughly $6 billion in net debt even if bitcoin were to plunge to $8,000.

In a post on X, the company led by Michael Saylor stated that its bitcoin reserves would still be sufficient to fully cover outstanding obligations under such a severe downside scenario.

Strategy currently holds 714,644 BTC — valued at approximately $49.3 billion at current market prices — making it the largest publicly traded corporate holder of the cryptocurrency. Since pivoting to bitcoin as its primary treasury reserve asset in 2020, the firm has steadily expanded its position, often funding purchases through debt issuance.

The playbook has been replicated by other firms, including Japan-listed Metaplanet, which has also leaned on debt to build bitcoin exposure. Strategy’s total debt stands near $6 billion, equivalent to about 86,956 BTC at prevailing prices — far below the size of its overall holdings.

While the leveraged accumulation strategy was applauded during bitcoin’s rally to an October peak above $126,000, it has drawn scrutiny following the cryptocurrency’s retreat toward $60,000. Investors have raised concerns that a deeper sell-off could pressure leveraged holders and potentially force asset sales.

Strategy sought to counter those fears, noting that even at $8,000 per bitcoin, the market value of its holdings would approximate $6 billion — enough, in theory, to match its net debt. The company also emphasized that its debt maturities are staggered between 2027 and 2032, reducing immediate refinancing risks.

Additionally, Strategy said it intends to “equitize” portions of its outstanding convertible notes rather than issue new senior debt. Convertible bonds give creditors the option to exchange debt for equity if certain conditions are met, potentially easing leverage without increasing borrowing.

Critics remain skeptical. Commentators such as Capitalists Exploits point out that Strategy reportedly spent about $54 billion acquiring its bitcoin position, with an average purchase price near $76,000 per coin. A decline to $8,000 would imply roughly $48 billion in unrealized losses, significantly weakening the company’s balance sheet optics — even if its assets technically still covered liabilities.