While the Bitcoin price is trading nearly 49% below its all-time high, Michael Saylor-led Strategy shared a stress test of how long its balance sheet can withstand a prolonged period of decline. The company announced that with its current capital structure, it would be able to fully cover interest payments and preferred stock dividends even if Bitcoin declined 11.4% annually for 5.8 consecutive years.
Stress test on capital structure
Strategy stated that it could maintain its targeted 1.0x BTC rating in this scenario. The calculation shared by the company is based on a gradual and sustained loss of value spread over about six years, rather than a one-time sharp collapse. Accordingly, the company gave the message that it could fulfill its financial obligations even in a long-term weak market period.
Strategy explained that under its current capital structure, it could fully fund interest expenses and preferred stock dividends and maintain a 1.0x BTC rating even if Bitcoin fell 11.4% annually for 5.8 years.
While Bitcoin is trading at $64,428, MSTR stock is approximately 84% below the peak seen in November 2024. The company’s assessment was highlighted as part of an effort to highlight its balance sheet resilience in the bear market that began in October 2025.
| Indicator | Level |
|---|---|
| Bitcoin’s difference from the top | 49% below |
| MSTR difference from November 2024 peak | 84% below |
| Stress test assumption | 11.4% annual decline for 5.8 years |
Change in financing model
Strategy has recently made a comprehensive revision to its Bitcoin-focused financing model. At the center of this process is the goal of recovering the price of privileged shares coded STRF, also known as Stretch. Another purpose of the regulation is to open space for the company to purchase Bitcoin again.
The company has also revamped its metrics framework in the last year to adapt to market conditions. The new approach replaces gross BTC-focused data with net equivalent metrics that take into account incremental preferred stock and convertible debt obligations.
The new market metrics framework replaces gross BTC-based indicators with net equivalents, accounting for growing preferred stock and convertible debt obligations.
Bitcoin Security Consortium support
Also announced last week was the Bitcoin Security Consortium, which aims to support the long-term security and resilience of the Bitcoin network. The initiative is supported by a total commitment of $15 million from members over the next three years. Founding members include Anchorage Digital, ARK Invest, BlackRock, Block, Blockstream, Coinbase, Fidelity Digital Assets, Galaxy and Strategy.
Strategy, formerly known as MicroStrategy, is a company that stands out with the large amount of Bitcoin it has accumulated on its balance sheet. The company, led by Michael Saylor, argues in its latest statement that it has established a structure that can meet its debt and dividend obligations even if the market decline is prolonged.
