Strategy’s 673K BTC Treasury is Designed to Survive Market Extremes – Expert

Key Insights:

• Top expert and author Michael Saylor’s Strategy and the Strategy stock is designed to survive market extremes.
• The expert noted Strategy’s 673,783 BTC holdings provide sufficient reserve as a buffer for meeting the treasury’s dividend demands.
• A steep 90% drop in bitcoin price to $9,000 would mean selling about 91,400 BTC in a year. Even then, this represents only a small fraction of Strategy’s total holdings.

Strategy stock is designed to survive market extremes, as per a recent analysis by economics author Adam Livingston. As of January 4, 2026, the firm holds 673,783 Bitcoin. The expert noted Strategy’s 673,783 BTC holdings provide sufficient reserve as a buffer for meeting the treasury’s dividend demands.

The company’s position appears resilient even in extreme Bitcoin price scenarios. The findings counter doubts about the company’s long-term sustainability.

Large Bitcoin Reserves Offer Multi-year Cushion for Strategy Stock

Strategy faces an annual cash demand of about $823 million to cover dividends for its Strategy stock holders. In his post on X, Adam modeled how many Bitcoins the company would need to sell at different price levels to meet these payouts.

If bitcoin trades at $90,000, roughly 9,100 BTC would need to be sold each year, he said. Should the price fall by half to $45,000, that number rises to around 18,300 BTC.

Even in the most extreme downturns, the treasury appears capable of handling its obligations. A severe drop to $18,000 would still require selling about 45,700 BTC annually, a level well within the firm’s holdings.

A steep 90% drop in Bitcoin to $9,000 would mean selling about 91,400 BTC in a year. Even then, this represents only a small fraction of Strategy’s total holdings. The company also maintains a USD reserve in cash. This reserve offers roughly 2.7 years of operational runway without needing to sell Bitcoin.

Adam noted that dividends would only be at risk if several severe conditions hit at the same time. The treasury’s size and liquidity make such a scenario unlikely.

Issuance of STRC Creates a Funding Loop

Michael Saylor’s preferred stock operates on a model that remains sustainable when prices stay near par value. Each $1 billion in STRC generates about $110 million in annual dividends at an 11% rate. This translates to roughly $9.17 million in monthly payouts per billion issued.

Strategy keeps just 11% of proceeds in its USD reserve to pre-fund a full year of dividends. With daily issuance of $25 million, Strategy could raise around $6.25 billion over 250 trading days. The corresponding dividend obligation on this new capital would total $687.5 million annually.

After setting aside funds for dividends, about $5.56 billion would remain for bitcoin purchases and day-to-day operations.

The ATM program allows Strategy to utilize net proceeds for both general corporate needs and bitcoin purchases. It can also fund dividends on other preferred stock series, acting as a broader liquidity tool for the company.

STRC’s variable dividend structure helps maintain stable prices near par value. At this level, market demand sets the limit, not the company’s ability to pay. Adam pointed out that this design resolves past concerns about sustaining dividends during periods of market volatility.

Strategy stock itself has risen nearly tenfold since launching its treasury plan in August 2020, but few have matched that success.

Galaxy Digital CEO Mike Novogratz estimated that only three out of 50 treasury companies executed the model successfully, as per a recent coverage by TheCoinRepublic. The rest are struggling to recover, forced to dig themselves out of mounting losses.