- Michael Saylor announced Strategy’s Bitcoin Security Program to prepare for post-quantum cryptography options for BTC security early.
- Chief Executive Officer, Phong Le, said Strategy’s balance sheet faces stress only if Bitcoin falls to $8,000 and stays near that level for 5–6 years on convertibles.
Strategy Executive Chairman Michael Saylor said the company will launch a Bitcoin Security Program aimed at preparing the network for future threats posed by quantum computing. He announced the initiative during Strategy’s earnings call, describing it as a coordinated effort with cybersecurity specialists and participants across the Bitcoin ecosystem. The company plans to invite researchers, wallet providers, miners, and exchanges to contribute security assessments.
Saylor said the program will evaluate post-quantum cryptography approaches that could be used if advances in quantum hardware eventually weaken today’s digital signature schemes. Quantum computing is generally seen as a long-term risk, not an immediate threat. The program is meant to prepare for a technology shift that could affect many systems using current cryptography.
Join us for an update on $MSTR financial results, digital credit instruments like $STRC, and the state of the digital asset marketplace, followed by live Q&A with equity analysts and industry leaders.https://t.co/64lQbNVJdO
— Michael Saylor (@saylor) February 5, 2026
The company will work with security researchers to study potential upgrade paths for Bitcoin’s authentication methods, with attention on how changes could be adopted through the network’s established governance and consensus processes. Saylor said the effort is preventative and does not reflect a current security failure.
Previously, CNF reported JPMorgan warned Strategy’s heavy Bitcoin exposure could lead to removal from the MSCI USA Index under potential rule changes. JPMorgan said an exclusion could force passive MSCI-linked funds to sell MSTR shares, potentially driving large outflows.
Strategy’s Balance Sheet Questions After Bitcoin Price Drop
Additionally, executives responded to investor questions about Bitcoin price decline and the company’s ability to manage its capital structure during a drawdown. Chief Executive Officer Phong Le said the balance sheet would only face strain under an extreme scenario in which Bitcoin fell to $8,000 and remained near that level for five to six years.
He said that at about that point, the company’s Bitcoin reserve would equal its net debt, reducing flexibility in paying off convertible notes.
Strategy reported a quarterly net loss driven largely by unrealized losses on its Bitcoin holdings under mark-to-market accounting after BTC traded below the company’s average purchase price. Chief Financial Officer Andrew Kang said the result reflected the quarter-end price level and that the firm continued operating under its long-term approach.
Most recently, we also reported that Binance plans to convert the $1 billion stablecoin portion of its SAFU fund into Bitcoin within 30 days. Binance will rebalance SAFU back to $1 billion if the fund’s value falls below $800 million due to bitcoin price moves.
The webinar took place during a broad crypto sell-off, with Bitcoin price down about 9% over 24 hours to around $64,833 at the time of reporting. Strategy’s shares fell about 17% on the day to roughly $106.9 and were down about 72% over six months.
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