According to The Block, during its Q4 earnings call, Strategy updated its perspective on the company's financial resilience to Bitcoin volatility, as well as its stance on concerns related to quantum computing.
New extreme scenario impacts the balance sheet.
Phong Le, CEO of Strategy, stated that the company's balance sheet remains resilient, unless an extreme scenario occurs: the price of Bitcoin falls to around $8,000 and remains at that level for 5–6 consecutive years.
In that rare case, Strategy might be forced to XEM additional financial measures to manage the payment pressure from convertible notes, including:
- Restructuring
- Issuing additional shares
- Raising new debt
Phong Le emphasized that this was merely a hypothetical stress-test scenario and did not reflect the management's underlying expectations for Bitcoin's long-term prospects. Strategy has long pursued a Bitcoin Treasury strategy, viewing BTC as a strategic reserve asset on its balance sheet. The company's public disclosure of extreme risk thresholds is XEM as a move to increase risk transparency, given the growing investor interest in the financial management capabilities of companies holding large amounts of Bitcoin.
Michael Saylor dismisses concerns about quantum computers.
Also during the earnings call, Michael Saylor, Executive Chairman of Strategy, dismissed concerns related to quantum computers and risks to Bitcoin, calling them “FUD” (fear, uncertainty, doubt).
According to Saylor, scenarios of quantum computers breaking Bitcoin's security are greatly exaggerated, while the Bitcoin community is perfectly capable of upgrading the protocol to adapt to future technological advancements.
Notably, Strategy announced it will launch a Bitcoin security initiative aimed at:
- Support research and development of security upgrades.
- Preparing for long-term improvements such as quantum computer resistance.
- This contributes to strengthening institutional investor confidence in Bitcoin infrastructure.
This move shows that Strategy is not only focused on holding BTC, but also wants to play an active Vai in protecting and developing the Bitcoin ecosystem.
Statements from Strategy's leadership team were assessed as follows:
- Reduce concerns about short-term financial risks by clearly outlining the extreme scenario threshold.
- Strengthening the long-term stance in favor of Bitcoin.
- Refuting the negative arguments surrounding quantum computers, which are often brought up whenever the price of BTC fluctuates sharply.
