Amid rising short pressure, Michael Saylor announced plans to convert approximately $6 billion in convertible bond debt into equity. The move would replace repayment obligations with newly issued shares, effectively lowering leverage on the company’s balance sheet. While the shift could dilute existing shareholders, it would strengthen Strategy’s financial structure during periods of Bitcoin volatility.

The company maintains that its Bitcoin treasury provides a significant cushion against extreme downside scenarios. According to Strategy’s internal estimates, Bitcoin would need to fall nearly 88% — to around $8,000 — before the value of its holdings aligned with its debt levels. As both institutional backing and short interest intensify, Strategy remains one of the most closely watched proxies for Bitcoin exposure on Wall Street.