The Balance Sheet Is Stable Unless BTC Falls Below This Critical Level

The Strategy’s Bitcoin reserves cover the debt, and only a long decline to $8,000 would force a reset.

Strategy CEO Phong Le told investors on Thursday that the company’s balance sheet remains stable despite the recent turmoil in the crypto market, although extreme conditions could pose challenges.

This company, the owner of the largest Bitcoin (BTC) in the world, says that it will only need to consider restructuring or additional funds if the cryptocurrency falls to $ 8,000 and remains there for five to six years.

Balance Sheet Held Amid Bitcoin Sell-Off

According to a report by The Block, Le, speaking during Strategy’s fourth quarter, emphasized that even after recent market losses, the company’s Bitcoin is comfortably covering its revolving debt.

“In the worst case scenario, if we’re going to have a 90% drop in the price of Bitcoin, and the price was $8,000, that’s the point where our Bitcoin reserves are equal to our total debt, and then we’re going to look at restructuring, issuing more equity, issuing more debt,” he said.

The call came after a sharp sell-off across crypto markets, with BTC down nearly 7% in 24 hours, trading below $66,000 at the time of writing. The strategy’s stock, MSTR, fell 17% to $107, erasing most of its gains since late 2025 and leaving it down nearly 72% in six months.

Analysts on social media noted that today’s session saw Bitcoin drop above $10,000, the first time it has sunk to such a value in one day, according to Kobeissi Letter. The dramatic loss in value was part of a market collapse that wiped out $2.2 billion in crypto market value as of mid-October 2025.

Executive Chairman Michael Saylor also spoke on the call, dismissing concerns about quantum computing threats to Bitcoin as “terrible FUD” and describing plans for a security measure to support possible developments, including quantum resistance.

He also emphasized that the Strategy’s long-term approach is designed to withstand volatility, pointing to the development of US regulation and the growing integration of Bitcoin into debt markets and corporate balance sheets.

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Strategic Outlook

The strategy is still expanding its holdings of Bitcoin despite the short-term price swings. Earlier this week, the company received 855 BTC for $75.3 million at an average price close to $88,000, bringing its total reserves to over 713,500 units.

The purchase follows a $25 billion raise in 2025 and a $1.25 billion buyout in early 2026, largely funded by a capital increase.

Saylor argued that the importance of Bitcoin financial companies lies in credit selection and institutional acceptance rather than daily price action. According to him, firms that hold BTC on the balance sheet can use debt issuance assets, lending, or financial services, which gives them flexibility where ETFs are not.

Although sentiment has deteriorated significantly in recent months, he has placed these events as part of the long-term integration of digital currencies into global financial systems, rather than a short-term price event.