Strategy's CEO, who held a webinar after releasing the company's earnings report today, spoke about the worst-case scenario for Bitcoin. Continue Reading: BREAKINGStrategy's CEO, who held a webinar after releasing the company's earnings report today, spoke about the worst-case scenario for Bitcoin. Continue Reading: BREAKING

BREAKING: Strategy CEO Reveals the Level at Which They Would Be Unable to Pay Their Debts if Bitcoin Drops Further

1 min read

Following the sharp drop in Bitcoin prices, Strategy (MSTR) made important announcements regarding its current financial situation. The company announced that as of February 1st, it has cash reserves of $2.25 billion.

The statement indicated that the current level of dollar reserves is planned to be maintained for the next 2 to 3 years in order to finance dividend payments.

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Andrew Kang, a Strategy executive, stated that despite the drop in Bitcoin prices, the company’s strategy was being maintained in a “disciplined” manner. CEO Phong added that even though the Bitcoin price fell below the company’s average purchase cost of $76,000, no covenant breaches were triggered.

However, Phong also pointed out the worst-case scenario. He stated that if the Bitcoin price falls to the $8,000 level, the company may experience difficulties in servicing its debt. But at current price levels, the company has no problem meeting its obligations.

*This is not investment advice.

Continue Reading: BREAKING: Strategy CEO Reveals the Level at Which They Would Be Unable to Pay Their Debts if Bitcoin Drops Further

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