Strategy said a new stress-test model shows its Bitcoin-focused capital structure could withstand nearly six years of annual Bitcoin price declines while continuing to meet its financial obligations.

According to the company’s post on X, Bitcoin could fall by 11.4% per year for 5.8 consecutive years and Strategy would still be able to make interest payments, pay preferred stock dividends, and maintain a 1.0x BTC rating. The company presented the analysis as a long-term balance-sheet resilience model rather than a simulation of a single market crash.

The scenario examines how Strategy’s balance sheet would perform under steady annual Bitcoin price declines over almost six years. Strategy said the model demonstrates that its financing structure can continue supporting current obligations even during an extended period of weakness in Bitcoin prices. For a company whose treasury strategy is centered on Bitcoin and partly financed through securities with recurring obligations, the key measure is not only the market value of its holdings but also whether those holdings remain sufficient relative to interest, dividend, and debt-related commitments.

Bitcoin was trading at about $64,428 when the company shared the update. Strategy’s shares were still roughly 84% below their November 2024 peak, reflecting sustained pressure on Bitcoin-linked assets during the current market cycle.

Strategy revises reporting framework as obligations grow

Alongside the stress test, Strategy introduced changes to the financial framework used to support its Bitcoin strategy. The company is adjusting how it assesses its balance sheet while seeking to restore the value of its preferred shares, known as Stretch or STRF.

Strategy also aims to resume Bitcoin purchases through the updated financing model. The company said the revised structure offers a clearer view of its financial position as preferred stock and convertible debt represent a larger portion of its capital base.

Under the new reporting framework, Strategy is replacing gross Bitcoin-based metrics with net measurements that account for obligations linked to preferred shares and convertible debt. The company said the change is intended to help investors evaluate how its assets compare with financial liabilities across different market conditions.

Rather than focusing only on the size of Strategy’s Bitcoin holdings, the revised metrics emphasize the relationship between those holdings and outstanding financing commitments. The updated approach reflects how the company intends to manage risk while continuing its long-term Bitcoin treasury strategy. It also gives market participants a more direct way to track how changes in Bitcoin prices affect the cushion between Strategy’s digital-asset position and the claims created by its financing structure.

Strategy joins Bitcoin Security Consortium

Strategy’s update also comes as the company joins a broader industry initiative focused on Bitcoin network resilience. Strategy recently became a founding member of the newly formed Bitcoin Security Consortium alongside Anchorage Digital, ARK Invest, BlackRock, Block, Blockstream, Coinbase, Fidelity Digital Assets, and Galaxy.

The consortium has secured $15 million in member pledges over the next three years to support the security and resilience of the Bitcoin network. The effort places Strategy’s balance-sheet update within a wider institutional focus on Bitcoin infrastructure, as firms with exposure to the asset also support initiatives aimed at maintaining the network’s long-term operational security.