Benchmark Research refutes claims of financial instability surrounding crypto trading firm Strategy, asserting that its balance sheet is fundamentally designed to withstand market fluctuations. The company holds a significant Bitcoin position (around 649,870 BTC) and relies on convertible notes and perpetual preferred stock for support, allowing it to amplify exposure to the cryptocurrency without facing immediate repayment pressures. Benchmark views this structure as an advantage rather than a liability, arguing that public speculation about imminent insolvency is unfounded. The report acknowledges the recent volatility in Bitcoin prices but emphasizes that no significant threat exists until Bitcoin falls to near $12,700 for an extended period. This scenario, the report contends, would require a 86% collapse – a highly improbable outcome given the dominant influence of institutional capital. This analysis aligns with Benchmark’s previous experience of witnessing similar reactions in past cycles. They believe that volatility tends to fade as fundamentals eventually take precedence over public panic and speculation. For now, Strategy appears to be operating according to its intended framework during this volatile period.