Strategy’s leadership is pushing back against growing concerns that the world’s largest corporate holder of Bitcoin (BTC) could face serious financial stress asStrategy’s leadership is pushing back against growing concerns that the world’s largest corporate holder of Bitcoin (BTC) could face serious financial stress as

Bitcoin Must Fall 90% For Years To Pressure Strategy’s Debt, CEO Says

2026/02/07 13:00
3 min read

Strategy’s leadership is pushing back against growing concerns that the world’s largest corporate holder of Bitcoin (BTC) could face serious financial stress as the cryptocurrency’s price continues to slide. 

Speaking after the company released its fourth‑quarter results, CEO Phong Le sought to reassure investors that the firm remains well-positioned, even as Bitcoin fell close to $60,000 on Thursday.

Bitcoin Sell‑Off Tests Strategy’s Financial Resilience

Bitcoin dropped roughly 50% since reaching all‑time highs of $126,000 in October of last year, a period during which Strategy, formerly known as MicroStrategy, was aggressively accumulating the digital asset. 

The sell‑off has weighed heavily on the company’s share price. Strategy’s stock, trading under the ticker MSTR, sank to about $104 on Thursday, its lowest level since August 2024, after plunging more than 17% during the session.

For now, investors are focused on two key factors: the price of Bitcoin itself and Strategy’s ability to meet its financial obligations if the downturn deepens. Those questions loomed large as founder Michael Saylor and CEO Phong Le addressed analysts during the firm’s earnings call.

Much of the attention centered on how Strategy would navigate a prolonged “Bitcoin winter,” should one materialize. Saylor has already taken steps to bolster the company’s financial flexibility, including raising a $2.25 billion cash reserve to cover preferred dividend payments totaling $888 million annually. 

However, investors remain uneasy about the company’s $8.2 billion in low‑ and zero‑interest convertible bonds, which could begin facing early redemptions starting in September 2027, particularly now that MSTR shares have fallen sharply.

Politics, Leverage, And Valuation In Focus

Saylor reiterated that the company is keeping its options open, including the possibility of selling Bitcoin if market conditions require it. 

He also framed crypto investing as inseparable from politics, pointing to President Donald Trump’s pro‑crypto stance and noting that Trump’s nominee for Federal Reserve (Fed) chair, Kevin Warsh, is viewed as supportive of digital assets. 

Still, Bitcoin fell through its post‑2024 election lows on Thursday, reflecting skepticism that the federal government will actively support Bitcoin purchases. Treasury Secretary Scott Bessent reinforced those doubts this week, telling Congress he lacks the authority to rescue Bitcoin markets.

On the balance‑sheet front, CEO Phong Le addressed worries about Strategy’s leverage. He said the company operates with roughly one‑third the leverage of a typical high‑yield firm. 

According to Le, Bitcoin would need to decline by about 90% for Strategy’s Bitcoin reserves to merely equal the value of its convertible debt. Even in that extreme scenario, he said, the company would explore restructuring options if it could not convert the debt into equity. 

Strategy’s own disclosures show an enterprise value of about $49.95 billion, compared with roughly $45.33 billion worth of Bitcoin on its balance sheet. Enterprise value includes the company’s market capitalization, preferred shares, and convertible bonds, minus cash. 

If Bitcoin drops once again near $63,000, Strategy’s market cap of $35.57 billion would need to fall about 13% from its recent closing price of $106.99 to eliminate the valuation premium over its Bitcoin holdings.

Strategy

However, since Thursday’s crash, both Bitcoin and Strategy’s stock have made a significant recovery. Bitcoin, for example, has surged to around $69,256. MSTR has recovered above $130, marking a 20% increase in less than 24 hours and offering short-term relief. 

Featured image from OpenArt, chart from TradingView.com 

Market Opportunity
Nowchain Logo
Nowchain Price(NOW)
$0.000942
$0.000942$0.000942
-7.92%
USD
Nowchain (NOW) Live Price Chart
Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact [email protected] for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

You May Also Like

Altcoin Rally Will Come Only When This Coin Makes ATH

Altcoin Rally Will Come Only When This Coin Makes ATH

The post Altcoin Rally Will Come Only When This Coin Makes ATH appeared on BitcoinEthereumNews.com. The crypto market is buzzing with talk of an altcoin season, but one prominent analyst says the true rally will only come after Ethereum hits a new all-time high. According to renowned crypto analyst Benjamin Cowen, a genuine altcoin season, like those seen in late 2017 and 2021, depends on three key conditions. The first is for Ethereum to not just break its all-time high (ATH), but to sustain a durable price above it. The second is a decline in Bitcoin dominance. And the third is the emergence of clear signs of crypto market rotation. Cowen emphasizes that Ethereum’s movement is the single most important factor for triggering a major altcoin season. He believes the current calls for an altcoin season are premature because Ethereum has yet to achieve a lasting ATH. Sponsored Sponsored Cowen expects Ethereum might briefly push above the $5,000 mark but must “check back in” with its 21-week exponential moving average (EMA) during a correction to build a robust rally. Cowen also believes an altcoin season is unlikely in October. Historically, Bitcoin dominance has seen its biggest monthly increase in October, rising by an average of 5%. He says the market should only expect an altcoin season after Bitcoin dominance begins to decline and a clear rotation into altcoins begins. Cowen also shared his outlook for the top of the current bull cycle. He explained that past cycles have tended to peak in the fourth quarter of the year following a halving, a pattern seen in 2013, 2017, and 2021. This suggests that the current cycle’s peak will likely arrive in the fourth quarter of this year. In terms of days, the current rally is 1,041 days old, while the previous two cycles topped out at 1,059 and 1,067 days, respectively. Cowen’s Forecast for the Coming…
Share
BitcoinEthereumNews2025/09/19 20:48
AI Data Centers: Unleashing Billions in a Revolutionary Tech Investment Wave

AI Data Centers: Unleashing Billions in a Revolutionary Tech Investment Wave

BitcoinWorld AI Data Centers: Unleashing Billions in a Revolutionary Tech Investment Wave In the rapidly evolving digital landscape, where breakthroughs are measured in petabytes and processing power, a monumental shift is underway that echoes the early days of crypto innovation: the unprecedented investment in AI Data Centers. Just as blockchain technology reshaped our understanding of decentralized finance, artificial intelligence is now redefining infrastructure, demanding colossal resources and attracting billions in capital. For those plugged into Bitcoin World, understanding this seismic shift isn’t just about tracking tech trends; it’s about recognizing the foundational changes that will power the next generation of digital economies and potentially influence everything from trading algorithms to network security. Understanding the AI Data Centers Phenomenon The sheer scale of capital flowing into AI Data Centers is staggering. Recent reports, like the purported $100 billion commitment for OpenAI’s compute infrastructure, highlight a level of investment previously unimaginable. These aren’t your typical server farms; AI Data Centers are highly specialized facilities, optimized for the intensive computational demands of machine learning models. They require: Massive GPU Clusters: Unlike traditional CPUs, GPUs are adept at parallel processing, crucial for training complex AI models. Advanced Cooling Systems: The heat generated by these powerful processors necessitates sophisticated cooling solutions. High-Bandwidth Networking: Moving vast datasets between servers and storage requires ultra-fast network infrastructure. Sustainable Power Solutions: The energy consumption is immense, driving demand for greener and more efficient power sources. These facilities are the bedrock upon which the future of AI will be built, enabling everything from advanced generative AI to autonomous systems. The race to build and expand these centers signifies a profound belief in AI’s transformative power and its potential to reshape global industries. Fueling the Future: The Surge in AI Infrastructure Beyond the physical walls of AI Data Centers, the entire AI Infrastructure ecosystem is experiencing an unprecedented surge. This includes not only the hardware—like NVIDIA’s cutting-edge GPUs and custom AI chips from companies like Google and Amazon—but also the intricate software layers, specialized networking solutions, and robust cybersecurity measures required to protect and manage these complex systems. The demand for this infrastructure is driven by: Rapid AI Model Development: As models grow larger and more sophisticated, so does their computational appetite. Enterprise AI Adoption: Businesses across sectors are integrating AI, from customer service chatbots to predictive analytics, requiring scalable infrastructure. Cloud AI Services: Major cloud providers (AWS, Azure, GCP) are heavily investing to offer AI-as-a-service, making powerful AI accessible to more users. This comprehensive build-out of AI Infrastructure is not merely about capacity; it’s about creating a resilient, efficient, and secure foundation that can support the next wave of AI innovation, making it a critical area for observation for anyone tracking major tech shifts and their impact on the digital economy. Decoding the Massive AI Investment Landscape The sheer volume of AI Investment is perhaps the most telling sign of the times. We’re witnessing a multi-faceted financial commitment from venture capitalists, tech giants, and even sovereign wealth funds. This isn’t just about funding startups; it’s about strategic long-term plays in foundational technology, reflecting a global belief in AI’s inevitable dominance. Consider the following aspects of this investment surge: Corporate Spending: Tech titans like Microsoft, Google, and Amazon are pouring billions into their AI divisions and infrastructure, securing their positions at the forefront. Startup Funding: AI startups continue to attract massive rounds, often with valuations soaring into the billions before product launch, indicating high market confidence. Government Initiatives: Nations are recognizing AI as a strategic imperative, allocating funds for research, development, and infrastructure to maintain competitive edges. This influx of capital is creating a self-reinforcing cycle: more investment leads to more innovation, which in turn attracts more investment. The implications for the global economy, including sectors relevant to cryptocurrency, are profound, as this AI Investment fuels new applications and potentially new digital assets. Is This the New AI Gold Rush? The term ‘AI Gold Rush‘ is frequently used, and for good reason. The parallels to historical periods of rapid expansion and wealth creation are striking. From the California Gold Rush to the dot-com boom, moments of transformative technology often spark frenzied activity. Today, the ‘gold’ is computational power, data, and skilled expertise, driving an unprecedented scramble for resources. What defines this AI Gold Rush? Rapid Value Creation: Companies leveraging AI are seeing exponential growth in valuation and market cap, often outpacing traditional industries. Intense Competition: The race to acquire resources—compute, talent, data—is fierce, leading to soaring costs and aggressive acquisition strategies. Speculative Investment: While much investment is strategic, there’s also an element of speculative capital chasing the next big AI breakthrough, reminiscent of past tech booms. Infrastructure Scramble: The urgent need for robust AI Infrastructure is creating immense opportunities for hardware manufacturers, cloud providers, and energy companies. While the opportunities are immense, like any gold rush, there are inherent risks. Over-speculation, unsustainable business models, and the potential for market correction are factors that savvy investors, including those in the crypto space, are carefully monitoring. The long-term winners will be those who build sustainable value amidst the frenzy. Navigating the AI Talent Shuffle: Challenges and Opportunities Amidst the hardware and capital, the human element—AI Talent—remains arguably the most critical and most expensive resource. The demand for skilled AI engineers, researchers, and data scientists far outstrips supply, leading to unprecedented competition for top professionals. The article’s mention of $100,000 visa fees is a stark illustration of how far companies are willing to go to secure the best minds globally. The AI Talent shuffle presents: Skyrocketing Salaries: Top AI professionals command salaries rivaling executive compensation, reflecting their value. Global Competition: Companies are recruiting globally, leading to brain drain concerns in some regions and fostering international talent wars. Upskilling Imperative: Existing workforces face pressure to adapt and acquire AI-related skills to remain relevant in an evolving job market. Ethical Considerations: As AI becomes more powerful, the need for ethical AI developers who understand its societal impact becomes paramount for responsible innovation. This intense focus on AI Talent acquisition and development underscores that while machines may be learning, human ingenuity and expertise are still the ultimate drivers of innovation in this transformative field. For crypto enthusiasts, understanding the flow of this talent can indicate where the next wave of innovation in decentralized AI or blockchain-AI integration might emerge, shaping future projects and ecosystems. The narrative of billions being poured into AI Data Centers and the broader AI Infrastructure is not just a fleeting headline; it’s a foundational story shaping the future of technology. From the strategic AI Investment driving unprecedented growth to the intense competition defining the AI Gold Rush, and the crucial scramble for AI Talent, every aspect points to a paradigm shift. As discussed on Bitcoin World’s ‘Equity’ podcast, this isn’t merely an expansion; it’s a redefinition of what’s possible, impacting every industry, including the burgeoning world of digital assets. The coming years will undoubtedly reveal the full extent of AI’s transformative power, making this a pivotal moment for observation and strategic engagement. To learn more about the latest AI market trends, explore our article on key developments shaping AI features and institutional adoption. This post AI Data Centers: Unleashing Billions in a Revolutionary Tech Investment Wave first appeared on BitcoinWorld.
Share
Coinstats2025/09/27 01:55
England’s Titanic Hitters Cruise Past Ireland In First T20 At Malahide

England’s Titanic Hitters Cruise Past Ireland In First T20 At Malahide

The post England’s Titanic Hitters Cruise Past Ireland In First T20 At Malahide appeared on BitcoinEthereumNews.com. DUBLIN, IRELAND – SEPTEMBER 17: Phil Salt of England hits out for six runs watched by Ireland wicketkeeper Lorcan Tucker during the first T20 International match between Ireland and England at Malahide Cricket Club on September 17, 2025 in Dublin, Ireland. (Photo by Gareth Copley/Getty Images) Getty Images England continued their brutal form in T20 internationals after they beat Ireland on Wednesday in the first of a three-match series. A trip across the Irish sea was a gentle introduction for stand-in captain Jacob Bethell as his side completed a comprehensive four-wicket win over the Green and Whites within the attractive environment of Malahide Castle and Gardens. England have now scored over 500 runs in the last two T20s. They mauled South Africa at Manchester last Tuesday, recording the highest score by a Full Member nation in the format. Phil Salt, who belted 141 at Old Trafford, fell 11 runs short of another century in his quest to be the best T20 batter in the world. Salt swiped his bat against his pad in anger as he walked off, but he has smashed a combined 12 sixes and 25 fours in those knocks. Ireland had batted well, scoring 25 boundaries after a relatively subdued powerplay. Lorcan Tucker averages over 40 in Test cricket, and his multi-format skills had a breezy outing here. The wicketkeeper hit a splendid 55 as he put on a stand of 123 with Harry Tector, who made 63. The only black mark against England was the bowling effort. Adil Rashid suffered more than usual in the truncated series against the Proteas, and he chucked in some ropey deliveries in North Dublin too. Jamie Overton has taken himself out of red-ball selection, but he was wayward in length. Sam Curran, England’s bits and pieces specialist, didn’t have his…
Share
BitcoinEthereumNews2025/09/18 07:53