Strategy CEO: Balance sheet secure unless bitcoin falls to $8,000

Strategy CEO Phong Le said that the company’s balance sheet remains stable unless bitcoin’s price falls to US$8,000 and stays there for five to six years, which would threaten its ability to service convertible debt.

CFO Andrew Kang emphasized the firm’s long-term approach despite market volatility.

Executive chairman Michael Saylor dismissed concerns about quantum computing threats to bitcoin, describing them as “horrible FUD,” and said such risks are at least a decade away.

Saylor also announced that Strategy plans to launch a Bitcoin Security program to coordinate efforts on quantum-resistant upgrades, which would be implemented through global consensus.

The firm remains confident in its management and financial position despite recent market downturns.

🔗 Source: The Block

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Implications, context, and why it matters.

Mark-to-market accounting drove the quarterly loss while holdings and funding grew

The $12.6 billion quarterly result was a net loss, tied mainly to the quarter-end drop in bitcoin’s fair value under mark-to-market (fair value) accounting adopted at the beginning of 2025 1.
Four months earlier, the same bitcoin position carried a $31 billion “paper” profit, based on ForkLog’s report 2.
During 2025, the firm added about 225,000 bitcoin, lifting total holdings to 713,502 BTC, which it said equals about 3.4% of all bitcoin that will ever exist 1.
The company moved away from convertible debt (bonds that can be converted into shares), raised $6.9 billion in preferred equity (a class of stock that typically pays dividends and ranks ahead of common shares in payouts) in 2025, plus set a $2.25 billion U.S. dollar cash reserve for dividend coverage 1.

A bitcoin-heavy balance sheet now shapes the funding model

Issuance of instruments such as its “Stretch” preferred equity adds more ways to raise money alongside the bitcoin treasury approach 1.
The setup turns an enterprise software firm into a capital-markets participant, with $888 million in yearly interest and dividend obligations 1.
The structure offers a template for other non-financial companies that want to use digital assets to raise capital, including crypto-collateralized securities (financial products backed by cryptocurrency holdings).
Execution depends on handling crypto volatility while keeping traditional finance credibility, which has pushed work on index-inclusion rules plus large cash reserves to reassure institutional investors (large professional investors such as asset managers and pension funds) 1.