Strategy will maintain its financial stability even if Bitcoin's price falls to $8,000, according to founder Michael Saylor, who announced a plan to convert $6 billion in debt into equity.

Our plan is to equitize our convertible debt over the next 3–6 years. https://t.co/yRsCuCRNHl

— Michael Saylor (@saylor) February 15, 2026

The firm holds 714,644 BTC, with reserves valued at $49 billion. With convertible debt around $6 billion, the value of assets would only match the debt if Bitcoin's price drops by 88%.

Equitizing the debt means exchanging bonds for shares instead of repaying in cash. Creditors would become co-owners of the company, reducing balance sheet pressure but diluting existing shareholders due to new share issuance.

On February 16, 2026, trader Vladimir Cohen described Saylor's statement as "typical marketing," recalling his previous inaccurate Bitcoin price predictions. He emphasized that the notion of a "bankruptcy price" is flawed: the leading cryptocurrency is not a direct collateral, so there is no specific margin call level for the strategy.

“Converting $6 billion in debt is an attempt to relieve cash pressure on the balance sheet, but creditors may refuse this exchange,” Cohen noted.

In his view, the company's viability depends not only on asset prices. He highlighted real threats such as SEC investigations, potential index exclusions, lawsuits, and loss of access to capital markets.

“There may come a time when even if Bitcoin rises, Strategy's shares continue to decline due to lost investor confidence,” the trader warned.

Cohen added that given the current cash reserves, a drop in Bitcoin to $20,000-30,000 poses no immediate threat to Saylor. The key risk lies not in the depth of the decline but in the duration of the downtrend and potential disillusionment with the crypto industry.

Losses and New Purchases

Strategy's average purchase price for Bitcoin is around $76,000. With the current price at $68,400, the company's unrealized loss is estimated at 10%.

On February 15, Saylor shared a chart showing the accumulation of reserves, typically signaling an upcoming deal. This would mark the 12th consecutive purchase, despite market corrections.

MSTR shares closed the trading week up 8.8%, reaching $133.88. The stock is trading 70% below its all-time high of $456 set in mid-July. The price movement correlates with Bitcoin's 45% drop from its October peak.

Source: Google Finance.

Recall that in February, Strategy reported a loss of $12.6 billion.