CEO of Strategy, Fong Le, told investors that the company's balance sheet remains resilient despite the recent drop in bitcoin BTC.

Le stated during Strategy's Q4 financial results webinar that bitcoin could fall to $8 000 and stay at that level for five to six years before there is a real threat to servicing its convertible debt.

"In the most adverse scenario, if bitcoin's price were to drop by 90%, and the price reached $8 000, that would be the point at which our bitcoin reserve equals our net debt, and we would not be able to then repay our convertible bonds using our bitcoin reserve. We would then have to consider restructuring, issuing additional equity, or additional debt," Le said.

The comment was made during Strategy's Thursday Q4 earnings call, where company executives discussed the impact of the recent bitcoin decline on the firm's financial position.

Strategy, the largest corporate holder of bitcoin, reported a net loss of $12.6 billion for the quarter, mainly due to unrealized losses on its digital assets as the bitcoin price fell below their average acquisition cost.

"These results were obviously driven by the decline in bitcoin's value at the end of the quarter based on our mark-to-market valuation," said Strategy's CFO, Andrew Kang. However, Kang emphasized the company's long-term approach, adding, "Even amid volatility, we continue to execute our plans."

CEO Michael Saylor supported this view. "Quarter-to-quarter fluctuations can be sharp, can be concerning, but it’s important to emphasize that our strategy is long-term," Saylor said. "It is designed to withstand short-term price volatility, even the extreme short-term conditions we are seeing today."

The webinar on Thursday took place against the backdrop of a sharp sell-off in crypto markets: bitcoin has now fallen 9% over the past 24 hours and is trading at $64 833. Strategy's MSTR shares lost much of their previous gains, dropping 17.12% to $106.9 on Thursday. Over the past six months, the decline has been 72%. Saylor urged investors to focus on positive fundamental factors, such as supportive regulatory changes in the US.

Quantum Threats
Meanwhile, Saylor addressed ongoing concerns about quantum computing for bitcoin during the earnings call, calling them part of what he characterized as "a parade of terrible FUD" around bitcoin.

"We believe that there are probably 10 or more years before a threat emerges — that’s the consensus," Saylor said. "It’s an emerging technology, but it’s still in its early stages."

Saylor noted that quantum computing will pose a threat not only to bitcoin but also to the financial and defense sectors that rely on traditional cryptography. He added that significant investments are already being made to develop quantum-resistant protocols, and bitcoin will be upgraded through global consensus.

"Bitcoin is being upgraded, and it can be made even stronger," Saylor said. "We are optimists and believe humanity will meet these challenges, we will upgrade the technology to meet these challenges, and we will do so rationally."

To support the consensus and solutions for upgrading bitcoin’s resilience against quantum threats, Saylor announced that Strategy will launch the Bitcoin Security program, which will be coordinated with global cybersecurity, cryptocurrency, and bitcoin communities.

"The company is well-managed, well-collateralized, and responsibly structured so that we can withstand difficult months, difficult quarters, and even challenging annual or two- or three-year cycles," Saylor said. "We have been through this before. And we are ready to do it again."