STRATEGY ASSURES INVESTORS IT CAN WEATHER A BITCOIN CRASH TO $8000
#BTC☀️ #StrategicTrading Amid recent declines in the Bitcoin price, the financial health of major corporate holders has come under scrutiny. Strategy (formerly MicroStrategy), the largest institutional holder of Bitcoin, has moved to reassure investors by detailing the resilience of its financial position. Despite currently facing unrealized losses of approximately $6 billion on its Bitcoin holdings, the company stated that it has structured its finances to avoid a liquidity crisis. In a recent announcement, Strategy declared that it could fully repay its debts even if Bitcoin's price were to fall as low as $8,000. "We can withstand a drop in the $BTC price to $8,000 and still have sufficient assets to fully cover our debt," the company stated from its official X account. The company, led by Bitcoin advocate Michael Saylor, currently holds roughly $49.3 billion worth of Bitcoin, acquired at an average price of $69,000 per coin. To mitigate the risk of forced liquidation, Strategy has restructured its loans, extending maturities into 2032. In a strategic move to further strengthen its balance sheet, Michael Saylor announced the company's plan to convert $6 billion of its convertible bond debt into equity. "We plan to equitize our convertible debt over the next 3–6 years," Saylor explained, a process that would significantly reduce the company's overall debt burden. Strategy CEO Phong Le also contextualized the potential for a severe price drop, suggesting that a fall to the $8,000 level would likely occur over a period of years, providing the company with "ample time for restructuring or raising additional capital." Despite the market volatility and current paper losses, Strategy is maintaining its aggressive accumulation strategy. The company recently marked its 12th consecutive week of purchasing Bitcoin, signaling a continued commitment to its long-term holding strategy regardless of short-term price fluctuations. Disclaimer: This article is for informational purposes only and does not constitute investment advice.
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