Strategy Says Bitcoin Must Fall 83% for STRC to Reach 1x BTC Rating

Strategy said its internal model shows Bitcoin would need to fall 83% from current levels to $13,136 for STRC to reach a 1x BTC Rating. According to Odaily, the metric means the value of Bitcoin reserves equals the nominal debt and preferred stock claims included in the security, and it is not an external credit rating. The model puts Bitcoin price thresholds at $1,519 for STRF, $13,136 for STRC, $14,198 for STRE, $15,857 for STRK and $17,517 for STRD, while debt has a threshold of zero under the model. Strategy said the BTC Rating does not mean STRC will default, stop paying dividends or trade at a specific price. As of August 30, Strategy held 845,050 Bitcoin and $6.71 billion in assets. On August 31, the company disclosed a $152 million repurchase of STRC and a $30 million allocation to cash, bringing that balance to $1.61 billion. Its latest Bitcoin purchase added 4,603 Bitcoin for about $369.7 million at an average price of $80,318.