Strategy: Bitcoin Needs to Fall 83% to Hit 1x BTC Rating on STRC

Strategy stated that, according to its internal model, Bitcoin's price would need to drop 83% from current levels to $13,136 for STRC to reach a 1x BTC Rating. This metric indicates that the value of the Bitcoin reserve equals the nominal debt and preferred stock claims counted against the security, and is not an external credit rating.

The model shows that the Bitcoin price thresholds for STRF, STRC, STRE, STRK, and STRD are $1,519, $13,136, $14,198, $15,857, and $17,517, respectively, while the threshold for debt under this model is zero. The BTC Rating does not imply that STRC will default, suspend dividends, or trade at a specific price.

As of August 30, Strategy held 845,050 Bitcoin and $6.71 billion in cash assets. On August 31, the company disclosed a repurchase of $152 million in STRC and allocated $30 million to its dollar cash position, bringing that balance to $1.61 billion. Its latest Bitcoin transaction added 4,603 coins for approximately $369.7 million, at an average price of $80,318. (Bitcoin.com News)