Bitcoin’s recent 21% correction to $61,000 has raised concerns about Strategy (MSTR) being forced to liquidate its massive holdings. The company paused its Bitcoin accumulation to buy back $1.38 billion in debt, and its preferred stock (STRC) trades below $100. However, Strategy‘s conservative 11% net leverage provides a buffer against forced sales, even if short-term liquidity has tightened.
Bitcoin faced a 21% price correction, retesting the $61,000 level. This movement coincided with Strategy’s decision to buy back corporate debt, temporarily pausing its Bitcoin accumulation.
The company had been the largest known Bitcoin buyer, accumulating 126,016 BTC for $9.31 billion since March. It used $1.38 billion from recent equity issuances for the debt repurchase.
The decision coincided with the Stretch preferred stock (STRC) distancing itself from $100. This stock allows Strategy to issue new shares when its price reaches that level and offers an 11.5% annual dividend.
Strategy raised $7.5 billion through preferred stock issuances in early 2026, supporting Bitcoin’s price. Its cash position is now reduced to $900 million, enough to cover dividends for six months.
The company’s 11% net leverage is a key financial metric to monitor. By any standard, the coverage provided by its Bitcoin holdings is considered conservative.
While short-term liquidity conditions have deteriorated, no contractual debt floor forces a Bitcoin reserve liquidation. The company could also opt to dilute current MSTR holders if needed.
According to X user zeroxkyle, an eventual Bitcoin sale from Strategy would only bring its price down faster. The analysis refers to a “doom loop” causing buyer hesitation.
It is impossible to predict what would ease investors’ tension, as Strategy faces no imminent forced sale. As long as STRC trades below $100 and spot ETFs show net selling, odds for a Bitcoin rally above $70,000 remain slim.
