- Strategy CEO is confident of his firm’s stability despite falling BTC prices.
- Phong Le says Bitcoin would need to drop to $8,000 to disrupt Strategy’s balance sheet.
- Strategy reported a net loss of $12.6 billion in Q4 2025.
Strategy CEO Phong Le has issued a confidence-boosting statement about the company’s balance sheet amid declining Bitcoin prices. During Strategy’s fourth-quarter webinar, Le reassured investors, stating that Bitcoin would need to drop to $8,000 and remain at that level for five to six years before posing a real threat to their investments.
Strategy Unmoved Despite Bitcoin’s Decline
According to Le, it will take a 90% decline in Bitcoin price, which would bring the price to about $8,000, before the company’s Bitcoin reserve equals its net debt. It is only under such a scenario that Strategy would be unable to pay off its convertibles using its Bitcoin reserve. Even at that, Le noted that the investment company could still fashion a way out by restructuring, issuing additional equity, or issuing additional debt.
Although Le’s statement reflects Strategy’s robust structure as a Bitcoin holding company, it comes amid a significant drawdown in its balance sheet. Despite its status as the largest corporate Bitcoin holder, Strategy reported a net loss of $12.6 billion in Q4 2025. According to reports, the loss stemmed mainly from unrealized losses on the firm’s digital asset holdings, as Bitcoin’s price fell below its average purchase price.
Strategy’s Approach in Long-Term-Inclined
According to Strategy’s CFO, Andrew Kang, the quarter-end decline in Bitcoin price pushed the value under the company’s mark-to-market accounting. However, Kang maintains a high level of confidence in Strategy’s long-term approach, noting that the company can continue to execute its business even in a volatile environment.
Michael Saylor, the firm’s executive chairman, echoed Kang’s view, emphasizing that the company focuses on long-term prospects. According to Saylor, even though quarter-to-quarter moves can be sharp and unsettling, the firm’s strategy is built to withstand short-term price volatility, including extreme conditions like we are seeing today.
In the meantime, Bitcoin’s downward spiral continued into the first quarter of 2026, with the cryptocurrency declining by over 30% in the past month.
Related: 11 State Pension Funds Lose 60% on Strategy Shares As Bitcoin Declines
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