MicroStrategy's BTC Credit model sets undercollateralization floor at $16,184 BTC based on $53.54B in BTC reserves and modeled assumptions.
DeFi & Yields ·
MicroStrategy's Executive Chairman Michael Saylor disclosed findings from the company's BTC Credit model, which calculates a undercollateralization floor of $16,184 for its STRC instrument. The model operates under assumptions of 10% annual BTC returns, a $63,701 BTC price point, and 40% volatility, revealing $53.54 billion in BTC reserves alongside $4.65 billion in USD reserves. The instrument carries an 8.84% BTC risk metric and a 115 basis point credit spread.
The company's combined debt and preferred stock holdings carry a notional value of $21.95 billion, with a corresponding overall collateralization floor of $20,587. This modeling framework defines the price thresholds at which the respective instruments would slip below full collateralization—a key risk metric for investors evaluating the structure.
The disclosure provides a snapshot of MicroStrategy's balance-sheet positioning around bitcoin but does not address how the model performs under alternative assumptions or stress scenarios, nor does it indicate whether these parameters will be updated as market conditions shift.