Strategy Reveals 5.8-Year Decline Scenario for Bitcoin

The price of Bitcoin is currently trading about 49% below its all-time high. Strategy, led by Michael Saylor, announced that Bitcoin could cover interest payments and preferred stock dividends even if it declines by 11.4% annually for 5.8 consecutive years. The company stated that it could maintain its targeted 1.0x BTC note under this scenario. The calculation is based on a gradual loss of value spread over six years rather than a sharp crash. While Bitcoin is trading at $64,428, MSTR shares are approximately 84% below their peak in November 2024. Strategy has undergone a comprehensive revision of its Bitcoin-focused financing model and set a target for the recovery of the price of preferred shares coded STRF. The company has updated its metric framework to adapt to market conditions. The new approach highlights net equivalent measurements that take into account increasing preferred shares and convertible debt obligations instead of gross BTC data. Additionally, the Bitcoin Security Consortium has been established to support the long-term security of the Bitcoin network. This initiative is backed by a commitment of $15 million over the next three years. Strategy claims to have established a structure that can meet debt and dividend obligations even if the market downturn persists.