Strategy: Bitcoin Would Have to Fall 83% for STRC to Hit 1x BTC Rating

Strategy Inc. (Nasdaq: MSTR) released a chart illustrating the Bitcoin price levels at which its various preferred securities would achieve a 1x BTC Rating. The metric is internal and illustrative, showing when the value of the company’s Bitcoin reserve matches the notional debt and preferred‑stock claims for each instrument.

Key Thresholds

• STRF: $1,519
• STRC: $13,136
• STRE: $14,198
• STRK: $15,857
• STRD: $17,517

What a 1x BTC Rating Means

A 1x rating indicates that, under Strategy’s calculation, the Bitcoin reserve value equals the notional obligations of the security. It does not imply default, dividend suspension, or a specific market price for the security once the threshold is reached.

Current Capital Position

As of August 30, Strategy reported holding 845,050 BTC and $6.71 billion in dollar assets. The following day it disclosed a $152 million repurchase of STRC and a $30 million increase in USD cash, raising the cash balance to $1.61 billion. The company also purchased 4,603 BTC for about $369.7 million at an average price of $80,318 per coin, resulting in zero net leverage.

Limitations of the Metric

The BTC Rating excludes potential cross‑defaults, does not reflect cash available for dividends, and is not an external credit rating. Future Bitcoin purchases or sales, changes to preferred‑stock issuance, debt adjustments, or movements in dollar assets could alter the thresholds even if Bitcoin’s market price stays unchanged.

Broader Capital Strategy

Strategy positions Bitcoin, digital credit instruments, and common equity as interconnected components of its long‑term capital model. The company aims to keep STRC’s market price near its $100 stated amount and has increased the STRC annual dividend rate to 12%.