Strategy CEO: Bitcoin would need to plunge to $8,000 before balance sheet issues

Strategy CEO Phong Le assured investors that the company's balance sheet remains resilient despite recent Bitcoin declines. He specified that Bitcoin would need to fall to $8,000 and remain there for five to six years before the firm would face issues servicing its convertible debt, potentially requiring restructuring or new equity/debt issuance. This discussion occurred during Strategy's fourth-quarter earnings call, where the company reported a $12.6 billion net loss, primarily due to unrealized losses on its Bitcoin holdings as the price fell below its average acquisition cost. Executives, including Chairman Michael Saylor, emphasized that the firm's strategy is built for the long term to withstand short-term volatility. Separately, Saylor dismissed near-term quantum computing threats to Bitcoin, noting the technology is nascent and that Bitcoin is upgradable, announcing Strategy will launch a Bitcoin Security program to coordinate quantum-resistant protocol development.

(Source：The Block)