As Bitcoin has stayed below $100,000 for the past two months, concerns are growing among investors. Many are now asking what could happen to Strategy if Bitcoin drops to $74,000, a level that is only about 15% below its current price.
Despite these worries that the strategy could face bankruptcy, the company continues to add more Bitcoin to its treasury.
MicroStrategy, now rebranded as Strategy, is no longer just a software company. Over the past five years, it has turned into a firm that is heavily focused on Bitcoin.
During this time, Strategy has built the largest corporate Bitcoin holding in the world. As of December 2025, the company owns around 672,497 Bitcoins. It spent roughly $50.44 billion to buy these coins, giving it an average purchase price of about $75,000 per Bitcoin.
Now, with Bitcoin dipping under 87k, things are starting to look uncomfortable for Michael Saylor’s Strategy.
Strategy holds a large amount of Bitcoin bought at different price levels. If Bitcoin drops to $74,000, the value of its holdings would go down on paper. However, this does not mean real losses unless Bitcoin stays low for a long time.
Strategy has about $8.2 billion in debt, mostly from unsecured convertible notes. This means lenders cannot ask for Bitcoin if prices fall, and no rules force the company to sell.
Because of this setup, a Bitcoin price drop affects numbers on paper but does not create any urgent financial problem.
Some investors worry that Strategy may need to sell Bitcoin just to cover its expenses. However, this is unlikely. The company already holds about $2.18 billion in cash, which is enough to pay interest and dividends for nearly 32 months.
Along with this cash reserve, Strategy still earns money from its software business. It also has no major debt payments until 2028, giving the company plenty of time without financial pressure.
Despite holding a strong Bitcoin portfolio, Strategy’s MSTR stock is down about 46% year-to-date. Michael Saylor has said the decline is driven more by external factors than by Bitcoin itself.
The drop is mainly due to external pressures like higher margin requirements, rising short selling, concerns over index rule changes, and competition from new Bitcoin investment products.
Adding to the pressure, there is uncertainty over whether Strategy will remain in the MSCI Index, with a decision expected around January 15, 2026.
Meanwhile, a drop to $74,000 would hurt sentiment, but Strategy remains structurally positioned for long-term Bitcoin upside.
Equity investors would feel the impact first through stock volatility and sentiment shifts. Long-term debt holders are less exposed because their claims are not tied to Bitcoin’s market price.
Index inclusion decisions in early 2026 could affect institutional demand for MSTR shares. Regulatory clarity around crypto accounting may also influence how investors value the company.
Investors should track Bitcoin price stability, Strategy’s financing actions, and any changes to its capital structure. These factors matter more than short-term price swings alone.
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