US EditionWhat Happens To Strategy's Bitcoin Model If Prices Crash To $8,000? Michael Saylor Has A Plan
- On Sunday, Michael Saylor said Strategy Inc. will convert its convertible debt into equity over three to six years after stating it could cover debt if Bitcoin fell to $8,000.
- The firm accumulated over $8.2 billion in debt through convertible senior notes and holds 714,644 BTC at an average acquisition cost of $76,056, forming $49 billion in BTC reserves.
- The firm calculated that in an $8,000 scenario, Bitcoin holdings would be worth $5.7 billion versus a $54.35 billion acquisition cost, implying a $48.6 billion unrealized loss and reserves shrinking to about $6 billion, matching net debt.
- MSTR shares reacted, closing 8.85% higher at $133.88 on Friday as Michael Saylor said, `We'll refinance the debt.` and the company would avoid issuing additional senior debt.
- Critics note the stock shows weak momentum ranking across short, medium, and long terms, while economist Peter Schiff wondered if anyone would take Saylor or Bitcoin seriously at $8,000.
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Strategy claims to be able to survive a bitcoin at $8,000, thanks to its 714 644 BTC and a debt spread until 2032, but the balance remains theoretical. The plan is to convert debt into shares to avoid cash repayment, at the risk of a massive dilution of shareholders if the Strategy action remains low. Critics like Capitalists Exploits and Anton Golub estimate that a $8,000 BTC would make the model unsustainable and transfer the risk to individua…
Bitcoin at $8,000 Wouldn’t Break Strategy, Firm Says While Outlining Debt-Equitization Plan
TL;DR Strategy says it can withstand Bitcoin falling to $8,000, framing it as stress testing and a financing posture rather than a reason to sell. The firm said it could cover roughly $6 billion in net debt at that level, shifting focus from price calls to balance-sheet flexibility. It also outlined plans to “equitize” debt, trading leverage for ownership, but is drawing skepticism as markets watch triggers and potential dilution risk. Strategy…
Even If BTC Falls to $8K, MSTR Bitcoin Strategy Can Cover $6B Debt
The post Even If BTC Falls to $8K, MSTR Bitcoin Strategy Can Cover $6B Debt appeared on BitcoinEthereumNews.com. Bitcoin treasury company Strategy, led by Michael Saylor, has responded to growing concerns about its financial health amid Bitcoin’s price fluctuations. The company has asserted that it can withstand a significant drop in Bitcoin’s value and still cover its $6 billion debt. Strategy, which holds 714,644 BTC worth approximately $49.3 …
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