Bitcoin Armor: How This Strategy Shields Against $25K Price Collapse

Bitcoin's safety net just got audited—and it holds strong even if BTC tanks to $25K.

The Debt Coverage Fortress

While traditional markets play Jenga with leverage, this BTC strategy builds bunkers. No fancy derivatives, no hopium—just cold, calculated coverage that laughs at 40% drawdowns.

Why $25K Matters

That’s the level where overleveraged miners start begging for bailouts. Meanwhile, disciplined hodlers? They’re reloading—because the last cycle proved panic is just opportunity wearing a scary mask.

Wall Street still thinks crypto risk management is an oxymoron. Their loss.

Overall, Strategy’s Bitcoin can cover all its debts nearly seven times over. The company also has $7.78 billion in preferred stock, bringing total obligations to about $16 billion. Bitcoin covers this combined debt and stock around 3.6 times, showing the firm has a solid safety buffer even with longer-term and slightly riskier obligations.

BTC accumulation and market position

Despite Bitcoin’s recent dip to $81,000, Strategy maintained a disciplined accumulation strategy. Last week, it acquired 8,178 BTC worth $835.6 million. The purchase occurred between November 10 and 16, funded through preferred stock offerings and previous capital programs. Strategy now holds 649,870 BTC, with a total cost basis of $48.37 billion and an average price of $74,433 per coin. The recent acquisition averaged $102,171 per Bitcoin.

The company has been addressing online rumors that it sold large amounts of Bitcoin. Some posts claimed Strategy sold $1 billion to $3 billion or moved over 40,000 BTC out of its wallets. Analysts explained these wallet changes were just normal transfers between storage accounts, not actual sales. Big institutions often MOVE coins around, and such transfers can look like sales on public trackers. 

Market implications and analyst views

Strategy’s moves have caught the attention of major banks and analysts. TD Cowen’s Lance Vitanza reaffirmed a buy rating on the firm, with a $535 price target. Meanwhile, JPMorgan warned that Strategy could face removal from major equity indices, prompting potential passive outflows. 

Strategy was also recently kicked out of the S&P 500 — a factor putting extra attention on its financial standing. 

Analysts estimate MSCI removal could trigger $2.8 billion in passive outflows, rising to $8.8 billion if other index providers follow suit. Michael Saylor emphasized, “We’re not a fund, a trust, or a holding company,” countering the market’s framing.

Response to MSCI Index Matter

Strategy is not a fund, not a trust, and not a holding company. We’re a publicly traded operating company with a $500 million software business and a unique treasury strategy that uses Bitcoin as productive capital.

This year alone, we’ve completed…

Crypto analyst Kamran Asghar said MSCI is looking at companies where digital assets make up more than half of total assets. Their decision, expected on January 15, 2026, could shake market confidence. This review comes at a time of economic uncertainty, cautious investors, and increasing rules for crypto. Since Strategy holds a large amount of Bitcoin, it could play a big role if the market adjusts.

Also Read: Organized Gang Steals $11M crypto From OpenAI CEO Sam Altman’s Ex