Strategy assesses asset-to-debt resilience amid potential Bitcoin price drops
Strategy announced that if Bitcoin’s price falls to their average cost basis of $74,000, the company’s asset-to-convertible debt ratio would remain at a strong 5.9×. This metric is referred to internally as their BTC rating of debt.
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Even in a scenario where Bitcoin drops further to $25,000 per coin, Strategy’s BTC rating would decrease but still hold at a robust 2.0×. This indicates the company’s relative financial resilience and its capacity to service its debt obligations despite significant market fluctuations.
Maintaining such a ratio going forward could help sustain investor confidence and provide greater stability for Strategy in the volatile cryptocurrency market.
