Jiang Zhuoer, CEO of mining pool BTC.TOP, said Tuesday that Strategy — the company formerly known as MicroStrategy — could absorb a Bitcoin price drop to $30,000 without being forced to sell assets. He cited the firm's minimal debt structure and its preferred share design, which allows it to keep buying even during a downturn.
Inside the debt structure
Zhuoer's assessment hinges on how Strategy finances its Bitcoin holdings. The company holds billions worth of BTC, mostly funded through convertible notes and other debt instruments. According to Zhuoer, the covenants on that debt are light — no margin calls tied to Bitcoin's dollar price. That means even a brutal 50% drawdown wouldn't trigger a forced liquidation. The debt itself is long-dated, giving the firm years to wait for a recovery.
The preferred share mechanic
Strategy also issued preferred shares that convert into common equity only at prices well above current levels. That design serves two purposes. It lets the company raise cash without diluting common shareholders at low prices, and it gives management a capital buffer to keep buying Bitcoin when the market dips. Zhuoer called it a "smart structure" that turns bearish sentiment into an accumulation opportunity. The shares effectively lock in a floor for the stock and provide a cushion for the balance sheet.
Whether other large holders have similar protections is less clear. Strategy's setup is unusually defensive for a company that bet its treasury on a volatile asset. Zhuoer's comments, delivered Tuesday via his personal channel, offer a rare external analysis of the firm's financial stamina. The company itself has not commented on his arithmetic.
