Strategy Says There Are No Financial Health Issues Until Bitcoin Falls 90%
Strategy Says There Are No Financial Health Issues Until Bitcoin Falls 90%
Concerns over Strategy’s financial health spread amid a sharp downturn in the Bitcoin (BTC) market. However, Strategy stated that its finances are so robust that Bitcoin would have to plunge by more than 90% and hit rock bottom before the company’s debt level would even match the value of its Bitcoin reserves.
According to cryptocurrency news outlet NewsBTC on February 7 (local time), Phong Le, CEO of Strategy—the world’s largest corporate holder of Bitcoin—moved to reassure investors by dismissing market concerns stemming from the recent decline in Bitcoin prices. With Bitcoin at one point threatening to dip toward the $60,000 level, Strategy emphasized during its fourth-quarter earnings call that the financial pressure it faces is far lower than market fears suggest.
Le explained that Bitcoin prices would need to fall by roughly 90% from current levels for the value of Strategy’s Bitcoin holdings to equal the size of its convertible debt. Strategy’s current enterprise value stands at approximately $49.95 billion, while the Bitcoin recorded on its balance sheet alone is valued at nearly $45.33 billion. He added that even in such an extreme scenario, the company would have ample flexibility to pursue options such as converting debt into equity or undertaking restructuring.
Founder and Executive Chairman Michael Saylor has also secured $2.25 billion in cash deposits to ensure the company can pay up to $888 million annually in preferred stock dividends, bolstering financial flexibility. While markets have voiced concerns over $8.2 billion worth of zero- and low-interest convertible notes that become eligible for early redemption starting in September 2027, Strategy’s management has made clear it is reviewing all options, including the potential sale of Bitcoin depending on circumstances.
Recently, the Bitcoin market has remained volatile despite pro-crypto moves by U.S. President Donald Trump and optimism surrounding Kevin Warsh, a leading candidate for Federal Reserve chair. Investor sentiment was also dampened when Treasury Secretary Scott Bessent clarified that he does not have the authority to bail out the Bitcoin market. Nevertheless, Bitcoin rebounded to around $69,256, showing signs of recovery, while Strategy’s stock price surged more than 20% in a single day, signaling renewed market confidence.
Although Bitcoin prices have fallen about 50% from the all-time high of $126,000 recorded last October—pushing Strategy’s share price down to as low as $104 at one point—the stock has since recovered to around $130. Strategy continues its aggressive Bitcoin acquisition strategy while maintaining a debt ratio roughly one-third that of typical high-growth companies. Despite market pessimism, the company plans to keep enhancing its Bitcoin-centric corporate value, backed by strong capital-raising capabilities and a solid financial structure.
*Disclaimer: This article is for investment reference only, and no responsibility is taken for any investment losses based on it. The content should be interpreted solely for informational purposes.*
<저작권자 ⓒ 코인리더스 무단전재 및 재배포 금지>
|
  많이 본 기사
English 많이 본 기사
|
