Strategy Model Puts Overall BTC Floor at $20,587 for $21.95 Billion in Debt, Preferred Stock

Strategy’s BTC Credit model calculates the company’s overall BTC floor at $20,587, based on $21.95 billion in combined debt and preferred stock, according to Executive Chairman Michael Saylor.

The model’s reference case assumes Bitcoin generates a 10% annual return, with BTC priced at $63,701 and volatility at 40%.

Strategy’s reserves are valued under the model at $53.54 billion in BTC and $4.65 billion in U.S. dollars.

STRC carries a BTC risk of 8.84% and a credit spread of 115 basis points. While the overall pool floor is $20,587, STRC’s specific BTC floor is $16,184, meaning undercollateralization would occur for this tranche if Bitcoin fell below that level.

STRC carries a BTC risk of 8.84% and a credit spread of 115 basis points. Its BTC floor is $16,184, meaning undercollateralization would occur if Bitcoin fell below that level.

Source: Michael Saylor