Could A Bitcoin Price Crash Below $10,000 Wipe Out Strategy? Saylor Shares What To Expect
MicroStrategy, now operating as Strategy, has become a major corporate holder of Bitcoin, though its current BTC investments are in the red. Concerns have been raised about the company's ability to survive a severe market downturn. In response, Michael Saylor shared that the company could withstand a Bitcoin price drop to as low as $8,000—an 88% decline—and still fully cover its $6.0 billion net debt.
The firm holds 714,644 BTC, valued at nearly $49 billion at current prices. Even if BTC fell to $8,000, its holdings would still be worth approximately $6.0 billion, matching its debt obligations. Strategy’s that its debt consists of low-interest convertible notes with maturities between 2027 and 2032, not margin loans subject to liquidation calls. This structure allows the company to avoid forced selling during price drops.
Despite recent market volatility, Strategy continues to buy Bitcoin, with a recent purchase of 1,142 BTC for $90 million in early February. Saylor reiterated the company’s plan to continue accumulating BTC regularly. While a crash to $10,000 would severely impact equity value, Strategy claims it has structured its finances to endure extreme scenarios.
bitcoinist02/18 06:02
