Strategy plans to convert $6B in debt to equity as Bitcoin volatility rises

Strategy has unveiled plans for a large balance-sheet restructuring, announcing that it intends to convert its entire $6 billion in convertible debt into equity over the next three to six years. The move would reduce leverage, turn bondholders into shareholders, and ease pressure on the company’s cash obligations.

The company says its reserve structure allows it to withstand severe market deterioration. According to Strategy, even if Bitcoin falls to $8,000 – roughly an 88% drop from current levels – its assets would still fully cover its debt. The firm currently holds 714,644 BTC valued at about $49 billion.

The average purchase price of its Bitcoin reserves is roughly $76,000, implying a drawdown of about 10% relative to current market levels. Despite the decline, Strategy has continued to accumulate BTC: over the weekend, the company hinted at another purchase, which would mark its twelfth consecutive week of adding to its holdings.

Strategy’s stock remains under pressure. After a brief rebound late last week, shares fell again alongside the broader market, dropping to $133.88 – nearly 70% below the all-time high reached in July. The decline tracks the broader crypto downturn: Bitcoin is down about 50% from its October peak and traded near $68,400 earlier this week.

Despite the correction in both the asset and the company’s market cap, Strategy continues to follow its “Bitcoin-first” approach and appears prepared to adjust its debt structure to support its long-term model of holding digital reserves.