Michael Saylor, executive chairman of Strategy, claims that even a drop in Bitcoin to $5,000 would leave the company’s collateral position intact, thanks to primarily equity-funded capital rather than leveraged debt. The firm holds approximately 842,138 BTC for a total cost exceeding $64 billion, with an average of about $75,000 per BTC. Unrealized losses in Q1 2026 are estimated between $8 billion and $12 billion, but they do not trigger margin calls, as the capital structure was deliberately designed to avoid forced selling. The Bitcoin-backed preferred securities issued by Strategy carry an overcollateralization ratio reaching 6x, providing a substantial buffer at current price levels.
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