Bitcoin Chaos: Strategy Claims 5.9x Debt Coverage, But Is It Just Smoke and Mirrors?

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Strategy swears that its Bitcoin stash covers debt 5.9 times over, even if BTC plummets to $74,000. They call it their “BTC Rating.” How noble. How confident. How utterly predictable.

Strategy boldly declares that should Bitcoin tumble to its humble $74,000 average cost, its precious BTC holdings would still cover its convertible debt by a staggering 5.9 times. Yes, you read that correctly. This miraculous ratio, which they proudly dub the “BTC Rating,” is apparently a safety net of epic proportions. But wait, there’s more: at a dismal $25,000 per Bitcoin, they’re still in the green with a modest 2.0x coverage. Marvel at the resilience! Or, if you prefer, prepare for a laugh.

The Bitcoin Fortress: Strategy’s Alleged Debt Coverage

With the confidence of a gambler holding a royal flush, Strategy points out that even if $BTC crashes to its unflattering $74K average, the company would still boast a 5.9x asset coverage. Yes, that’s right. All thanks to their golden convertibles. And if Bitcoin’s value sinks even further to $25K? Oh, no worries-they’ll still have a sturdy 2.0x cushion. Resilient? Or just lucky? You decide.

If $BTC dips to our beloved $74K average cost, we’ll still have 5.9x assets to cover convertible debt-aka the “BTC Rating.” At $25K? Well, we’re down to 2.0x. No sweat.

– Strategy (@Strategy)

As of November 25, 2025, Strategy’s Bitcoin hoard is estimated to be worth around $56 billion. How quaint. In comparison, their debts-those pesky liabilities-stand tall at over $8 billion. Naturally, the stock has been taking a nosedive. Because why wouldn’t it? Risk? It’s practically a given.

Related Reading: Crypto Drama: Strategy Misses the S&P 500 Again | Live Bitcoin News

Currently, Strategy holds a princely 649,870 Bitcoins. At the rather lofty price of $86,700 per Bitcoin, that’s about $56 billion in assets. Quite the empire, isn’t it?

But let’s not forget: the company has also accumulated a rather mountainous $8.2 billion in debt. And where did that come from? Oh, just some convertible notes and other charming financing arrangements used to fuel their Bitcoin fever. No big deal, right?

Now, based on these optimistic figures, the current coverage ratio sits at a solid 6.8x ($56B / $8.2B). A nice cushion, don’t you think? But don’t get too comfortable, because this ratio’s stability is entirely dependent on Bitcoin’s price. And as we know, Bitcoin’s price can change faster than a politician’s promises.

Ah, but let’s not forget the lurking fear of liquidity risk. If Bitcoin’s value falls hard, the holders of Strategy’s convertible debt might demand repayment in cash. Because, of course, equity conversion isn’t nearly as fun. If that happens, Strategy may be forced to sell their Bitcoin at a fraction of its former glory. A bit of a pickle, don’t you think?

MSCI to Decide on Crypto-Laden Companies: The Ultimate January 2026 Judgment Day

In January 2026, MSCI will make a momentous decision: will it exclude companies whose digital assets make up more than half of their total assets from its indices? Naturally, Strategy’s balance sheet, which is practically bursting with Bitcoins, is in the crosshairs. An exclusion could result in billions of dollars flooding out of the company faster than you can say “liquidation.”

Meanwhile, Wall Street giants like BlackRock and JPMorgan Chase have already trimmed their exposure to Strategy shares in Q3 2025. A tough blow, to be sure-especially now that Bitcoin’s price has taken a dive.

The stock price of Strategy (MSTR) has been dancing a delicate tango with Bitcoin’s value. The recent drop in Bitcoin’s price? Oh, it’s been playing a starring role in the recent dip of MSTR’s stock. What a twist!

Traditionally, investors have happily paid a premium to own MSTR shares, hoping to leverage their Bitcoin exposure. But with Bitcoin ETFs now on the market, that premium is starting to look like a bad joke. Could this once-profitable strategy be on its last legs? Only time will tell.

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2025-11-26 10:05