Michael Saylor Says Strategy Can Cover Debt Even if Bitcoin Crashes 88%

Highlights:

• Strategy says Bitcoin reserves can cover debt even after 88% crash.
• At $69K Bitcoin price, holdings cover $6 billion in debt 8.3 times.
• Saylor also plans to convert convertible debt into equity over the next six years.

Michael Saylor again defended the strength of his Bitcoin treasury firm, Strategy, as the crypto market remains under pressure. The company first shared a chart showing how its Bitcoin reserves support its debt position, even in a severe crash.

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Strategy can withstand a drawdown in $BTC price to $8K and still have sufficient assets to fully cover our debt. pic.twitter.com/vrw4z4Ex9q

— Strategy (@Strategy) February 15, 2026

Strategy Explains How It Can Cover Debt

At a $69K Bitcoin price, Strategy’s BTC reserve is valued at about $49.3 billion, while net debt stands at $6.0 billion. This means its holdings cover the debt 8.3 times. Even in a worst case scenario where Bitcoin drops 88% to around $8K, the reserve would still be close to $6.0 billion, matching its $6.0 billion net debt. In that case, the coverage ratio would be 1.0x, meaning the company could still meet its obligations.

The chart also outlines the debt structure. Strategy’s convertible notes mature between 2027 and 2032, so there is no near-term repayment pressure. In addition, the company plans to convert part of this debt into equity over time instead of taking on more senior debt. After sharing the chart, Saylor posted on X and reinforced the plan. He wrote, “Our plan is to equitize our convertible debt over the next 3 to 6 years.”

Our plan is to equitize our convertible debt over the next 3–6 years. https://t.co/yRsCuCRNHl

— Michael Saylor (@saylor) February 15, 2026

The remarks follow comments from Chief Executive Officer Phong Le during the fourth quarter earnings call, where he stressed that the company’s balance sheet remains solid despite the recent decline in Bitcoin prices. He explained that real pressure would only start if Bitcoin fell to $8,000 and stayed there for five to six years. He also said the company’s convertible notes remain manageable. Because of that, he described the current position as providing “security” during tough market conditions.

Strategy Keeps Buying Bitcoin Despite Unrealized Losses

The firm recently reported more than $5B in unrealized losses in its quarterly earnings. Even so, Strategy has continued to increase its Bitcoin holdings. On Monday last week, the company bought 1,142 BTC worth about $90M. This shows it is adding to its position while prices remain low.

Michael Saylor also shared his regular Bitcoin tracker update yesterday, hinting at another possible purchase later in the day. He has repeatedly said that Strategy has no plans to sell its Bitcoin and will continue buying more each quarter.

99>98 pic.twitter.com/BsTEvhbc9v

— Michael Saylor (@saylor) February 15, 2026

Strategy’s MSTR stock moved higher after Michael Saylor hinted at another Bitcoin purchase. The stock jumped nearly 10% in pre-market trading, showing investor confidence in the company’s long term Bitcoin strategy. Analysts, however, remain cautious and warn about the risks of holding large reserves in a highly volatile asset. Even so, Strategy’s debt management approach and its steady buying plan have continued to attract investor interest.

Previously, Saylor urged the United States government to adopt Bitcoin as part of its strategic reserves, similar to gold. He argued that pro-Bitcoin legislation would help innovation grow in the country. His advocacy highlights a broader vision beyond company strategy.

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