Strategy plans to convert $6B in convertible debt to equity over 3-6 years while holding 714,644 BTC worth $49B.
Michael Saylor has outlined a multi-year plan to convert Strategy’s $6 billion in convertible bond debt into equity, as the company continues to expand its Bitcoin treasury position despite recent market volatility.
Saylor Reveals 3-6 Year Plan to Equitize Convertible Debt
Strategy founder Michael Saylor said the firm plans to equitize its convertible debt over the next three to six years.
The company currently carries about $6 billion in bond obligations. The plan would convert those bonds into stock rather than repay them in cash.
Our plan is to equitize our convertible debt over the next 3–6 years. https://t.co/yRsCuCRNHl
— Michael Saylor (@saylor) February 15, 2026
Equitizing convertible debt means bondholders receive shares in exchange for their notes.
This reduces liabilities on the balance sheet and lowers repayment pressure. However, issuing new shares can dilute existing shareholders.
The company stated on social platform X that it can withstand a major Bitcoin drawdown.
“Strategy can withstand a drawdown in BTC price to $8,000 and still have sufficient assets to fully cover our debt,” the firm said. Saylor responded publicly to that statement.
Bitcoin Reserves and Downside Coverage
Strategy holds approximately 714,644 BTC, valued at about $49 billion at current market prices. The company has built one of the largest corporate Bitcoin reserves.
Its holdings exceed the value of its outstanding convertible debt by a wide margin.
According to the firm, Bitcoin would need to decline around 88% for the value of its reserves to match its debt.
Even under that scenario, the company maintains it could fully cover its obligations. The coverage claim is based on current reserve levels.
The average purchase price of Strategy’s Bitcoin is about $76,000 per coin.
With Bitcoin trading near $68,400, the firm is down roughly 10% on its aggregate position. Price volatility remains a factor in short-term performance.
Related Reading: Michael Saylor Defies Bitcoin Losses, Vows Strategy Will Keep Buying
Stock Performance and Ongoing Accumulation
Strategy shares recently rose 8.8% to close at $133.88 at the end of the week. The move followed a brief Bitcoin recovery toward $70,000. The rally faded as Bitcoin retreated back to the high $68,000 range.
Despite the recent gain, Strategy stock remains about 70% below its mid-July peak of $456.
The decline mirrors broader weakness in Bitcoin, which has fallen about 50% from its early October high. Market conditions have remained unstable.
Saylor signaled another potential Bitcoin purchase by sharing the company’s accumulation chart on X.
Such posts have often preceded new acquisitions. If confirmed, the next buy would mark 12 consecutive weeks of Bitcoin accumulation by the company.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Solana (SOL) Price News: ETF Outflows and Technical Indicators Show $45-$75 as Key Buying Range
Solana (SOL) price has slightly rebounded after a week of declines, but market sentiment remains cautious. Spot ETF net outflows and derivatives liquidations indicate that institutions are on the sidelines, with SOL's short-term trend leaning bearish, and key support is between $45 and $75. Analysts suggest that below $80 is an accumulation opportunity for long-term holders.
GateNews53m ago
The key battle for Bitcoin in April! Falling below $67,000 may lead to a dip to $52,000, as ETF and whale signals turn bearish.
Bitcoin faces a critical turning point in April 2026. In March, the price rose only slightly by 0.19%, and market momentum has weakened. Technically, it shows a “bear flag” pattern; during tests of the key trendline, it may initiate a new round of downside. Flows are split—ETF net inflows are weakening, and large whales continue to exert selling pressure. The key support level is $67,000; once that breaks, it will test lower levels. If it breaks above $75,900, it could reverse. Overall, Bitcoin still faces near-term pressure, and its April performance will influence subsequent market direction.
GateNews1h ago
Ethereum or plummet to $1,200? Analysts warn that a bull market trap has taken shape.
Crypto analyst Leshka.eth pointed out that the price of Ethereum is repeating a historical pattern, and if it breaks below the support level of $1990, it could face a pullback to $1200. Additionally, the tense macro environment and on-chain data indicate a lack of market confidence, but the increase in staking and the decrease in holdings may provide some support. The short-term trend depends on macro changes.
GateNews2h ago
PENGU Dips 5.41% Following Fed Rate Call—Bulls Losing Grip?
PENGU drops after the Fed holds rates, weakening short-term market sentiment.
Bearish indicators show low momentum, with sellers controlling price direction.
Ecosystem growth continues through gaming, retail expansion, and major partnerships.
Pudgy Penguins grabbed attention again after
CryptoNewsLand3h ago
Analyst: TD Sequential Flashes Buy Signals for These 2 Popular Altcoins
Two of the largest and most popular altcoins might be prone to big upward moves ahead, at least according to Ali Martinez, who outlined the TD Sequential as the indicator suggesting these breakouts.
Namely, those are DOGE, which continues to struggle well below $0.10, and ADA, which has fallen
CryptoPotato4h ago
YoungHoon Kim: XRP is expected to rise by 7475%, five predictions are questioned by many.
Korean social media figure Kim Yong-hoon has made five XRP predictions on the X platform, targeting a price of $100, which would represent a 7547% increase. He claims that the altcoin bull market has begun and predicts that meme coins will rise first. Although he has a large following, his past predictions have often been inaccurate, raising questions about his credibility. In the current macro environment, achieving a $100 target for XRP is considered extremely optimistic.
MarketWhisper6h ago
