Strategy CEO Says Balance Sheet is Safe Unless Bitcoin Crashes to $8,000

Highlights:

• Strategy Inc. says Bitcoin must drop to $8,000 for debt issues to appear.
• Company reports $12.6 billion quarterly loss due to falling Bitcoin values.
• Michael Saylor says Bitcoin can adapt to future quantum computing risks.

Strategy Inc., formerly known as MicroStrategy, executives spoke to investors during its fourth quarter earnings call on Thursday as Bitcoin prices fell sharply. During the call, Chief Executive Officer Phong Le said the company’s balance sheet remains strong despite the decline. He explained that real pressure would only appear in an extreme case. According to him, Bitcoin would need to drop to $8,000 and stay there for five to six years before the company struggles to service its convertible debt.

Strategy Warns Bitcoin at $8,000 Would Force Debt and Restructuring Moves

Le said that in a worst-case scenario, where Bitcoin falls about 90% to $8,000, the company’s Bitcoin holdings would equal its net debt. At that point, Strategy would not be able to repay its convertibles using Bitcoin alone. As a result, it would consider restructuring, issuing new shares, or taking on more debt.

Join us for an update on $MSTR financial results, digital credit instruments like $STRC, and the state of the digital asset marketplace, followed by live Q&A with equity analysts and industry leaders.https://t.co/64lQbNVJdO

— Michael Saylor (@saylor) February 5, 2026

Meanwhile, the company reported a net loss of $12.6 billion for the quarter. This was mainly due to unrealized losses on its digital asset holdings. Bitcoin’s price dropped below Strategy’s average buying cost, which hit results hard. Chief Financial Officer Andrew Kang said the losses were driven by the fall in Bitcoin’s value at quarter-end under mark-to-market accounting. However, he added that the company is still following its long-term plan, even during volatile market conditions.

Executive Chairman Michael Saylor said the company’s strategy is meant to handle short-term volatility. He noted that quarter-to-quarter moves can be sharp and unsettling. Still, he stressed that the strategy is built for the long term and can withstand even extreme price swings like those seen today.

Strategy announces Q4 2025 results:
– 713,502 $BTC held
– 22.8% BTC Yield in 2025
– Largest US equity issuer, raised $25.3 billion in 2025
– $STRC scaled to $3.4 billion; 11.25% current dividend rate https://t.co/d6oGz8jHI8

— Michael Saylor (@saylor) February 5, 2026

At the same time, the earnings call came as crypto markets saw heavy selling. Bitcoin fell 9% in the past 24 hours and traded at $65,657. Strategy’s stock, MSTR, dropped 17.12% on Thursday to $106.9, wiping out much of its earlier gains. Strategy owns over 713,000 Bitcoin, making it the biggest corporate crypto holder. Saylor noted this responsibility requires planning for Bitcoin’s long-term stability.

Michael Saylor Downplays Quantum Risk, Says Bitcoin Is Built to Adapt

During the same call, Michael Saylor responded to rising concerns about quantum computing and its possible impact on Bitcoin. He brushed it off as part of what he called a wave of fear, uncertainty, and doubt around the asset. He said the risk is likely 10 years or more away, which he described as the general view. While the technology looks promising, he added that it is still in early stages.

He explained that quantum computing would not only affect Bitcoin. It would also challenge sectors like finance and defense that depend on cryptography. Because of this, he noted that large investments are already going into quantum-resistant systems. He added that Bitcoin can be upgraded and made stronger over time. According to him, people will face these challenges and respond in a rational way.

To address future risks, Saylor said Strategy will launch a Bitcoin Security program. The program will work with global cyber, crypto, and Bitcoin security groups. Its goal is to support consensus and develop solutions for future quantum resistance upgrades.

Saylor closed by stressing the company’s ability to handle tough market cycles. He said the firm is well-managed, properly backed, and responsibly structured. Because of this, it can withstand difficult months, quarters, and even multi-year downturns. He added that the company has faced such periods before and is ready to do so again.