Michael Saylor has published a Bitcoin credit model that shows how much BTC sits behind every dollar MicroStrategy owes its bondholders and preferred shareholders. The model assigns each instrument a credit tier and a floor price, giving investors a way to see the Bitcoin level at which any security stops being fully collateralized. It lands as the company holds 843,775 BTC and carries $6.71 billion in convertible notes.
How the model works
The model tests obligations against a single reference case: a 10% annual Bitcoin return. Each instrument gets a credit spread, a rating, and a collateral reading, color-coded into Investment Grade, High Yield, and Distressed tiers. No major agency rates the company's convertibles or preferred shares, so Saylor built the scorecard himself. The dashboard extends work from July, when the Q2 report introduced a BTC Hurdle ARR of 10.8% — the effective cost of the company's credit stack.
What the floor prices show
Floor prices mark the Bitcoin price below which a specific instrument turns undercollateralized. BTC currently trades near $63,758, roughly 49% under its October 2025 record of $126,080. Strategy keeps a $3.75 billion cash reserve, enough to cover roughly 2.1 years of dividend and interest payments. Cumulative preferred dividends have already reached $1.06 billion.
The STRC buyback
In August, Strategy turned to fresh Bitcoin sales to fund buybacks of its STRC preferred stock, a variable-rate security with a $100 par value. Saylor has repeatedly said he wants STRC back to $100.
Critics' take
Critics counter that Strategy's Bitcoin income metrics flatter the underlying performance, while floor prices publish the exact level at which the capital structure cracks. The dashboard is live now, and the company's next move is to keep buying back STRC toward the $100 target.
