In a post on X on July 24, 2026, Strategy claimed that its current capital structure can withstand a severe scenario: Bitcoin falling 11.4% annually for 5.8 consecutive years. The claim came right as Bitcoin traded around $64,463 - dropping below the company’s average purchase price, with MSTR shares closing the day at $91.67.
This promise of nearly six years of resilience sounds convincing on paper, but its foundation rests on internally created metrics.
Where Does This Cushion Figure Come From?
Strategy’s calculation relies entirely on an internal metric called ‘BTC Floor ARR’. This represents the lowest annualized Bitcoin return considered capable of keeping the company’s BTC Rating ratio above the 1.0x threshold. The primary issue lies in the nature of the metric itself.
The BTC Rating is not a credit rating from an independent rating agency, but rather an illustrative in-house metric that overlooks cross-default dangers and debt refinancing risks. The model assumes the company will always be able to refinance its debt under similar terms. In a real market crisis, lending doors often slam shut or demand much steeper interest rates.
Asset Sales to Cover Cash Needs
Behind the optimism of these projections, the company’s financial obligations continue to mount. Strategy’s annual interest and dividend expenses now stand at $1.7 billion. Its current cash balance is only enough to cover those obligations for less than two years, unless it secures fresh funding soon.
These cash demands have already prompted concrete action. Between June 29 and July 5, Strategy sold 3,588 BTC, netting $216 million. The sale trimmed its total Bitcoin reserves from 847,363 to 843,775 BTC. Proceeds were directly funneled to fund preferred stock distributions and replenish cash reserves.
A $1.25 Billion Safety Net
The offloading of crypto assets was systematically planned. In June 2026, Strategy approved a Digital Credit Capital Framework authorizing the company to liquidate up to $1.25 billion in Bitcoin to secure its cash reserves.
As a complementary move to keep its shares attractive on the market, the company also raised its STRC dividend to 12%. It also approved a $1 billion share buyback program covering both common and preferred stock.
A five-year resilience calculation may buy time and calm investors. But as debt pressures mount, the market will always count how much actual cash is left to pay the bills - not how polished an internal illustrative score looks on a presentation deck.
Reported by crypto.news.
Also read: What Is Bitcoin Halving?
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
