Strategy’s $13,400 Bitcoin Floor Reveals Loss Hierarchy in Its Debt Structure

Strategy, the Bitcoin treasury firm, promotes a roughly $13,400 “BTC Floor” for its variable‑rate cumulative perpetual preferred stock (STRC). While Bitcoin trades near $78,000, the floor is a modeling metric, not a claim on the company’s Bitcoin reserve.

What the BTC Floor Represents

The floor is the Bitcoin price at which Strategy’s illustrative STRC coverage ratio reaches 1.0×. It is derived from a ratio that divides the dollar value of the Bitcoin reserve by a covered‑notional denominator. The denominator includes $6.714 billion of debt, subtracts $6.69 billion of USD assets, and adds senior STRF and STRC notional amounts, totaling about $11.28 billion.

Current Metrics

• STRC closed at $97.33 on Aug. 28, yielding about 12.33% annualized.
• Bitcoin reserve: 840,447 BTC valued at $64.718 billion (based on a $77,004 price).
• Resulting coverage ratio: roughly 5.7×.
• Calculated floor: $13,415 (rounded to $13,400).

Sensitivity to Asset Changes

The floor moves with the amount of USD cash and other assets. For example, depleting the $1.59 billion cash pool without reducing debt would raise the floor to about $15,300. Removing all $6.69 billion of USD assets would push it toward $21,400.

Recent Capital Activity

In the latest disclosed week, Strategy:

• Sold 18,261,118 MSTR shares for $2.0065 billion.
• Repurchased 1,431,212 STRC shares for $136.4 million.
• Added $300 million to the USD reserve, increasing cash holdings.

Funding came from common stock issuance, causing dilution to MSTR shareholders.

Legal Priority and Potential Restructuring

In a restructuring scenario, creditors, subsidiary liabilities, and senior STRF rank ahead of STRC, while junior preferred and MSTR common rank behind. The $13,400 floor reflects one set of dated assets and counted claims; actual outcomes depend on cash availability, capital‑market access, and board allocation decisions.