Michael Saylor Says Strategy Can Cover Debt Even If Bitcoin Crashes to $8,000

Michael Saylor has once again reiterated that his Bitcoin treasury firm, Strategy, can withstand more dips in the value of the BTC price. He shared plans on how the company would control its debt in the future.

Strategy Says It Can Survive a Bitcoin Drop to $8,000

In recent posts, the Treasury firm and Michael Saylor confirmed that the company can cover its debts even if the Bitcoin price were to crash to $8,000. They shared a chart highlighting how it currently holds $6 billion in net debt, and in the case where there is a 88% crash in BTC price, its reserve value would still remain in the range of its net debt.

Saylor also shared that the plan was to equitize Strategy’s convertible debt over the next 3-6 years. This would reduce the debt on the balance sheet by issuing stock instead, avoiding new senior debt issuance.

These convertible notes are serviceable, which gives the company breathing room or ‘security’ in downturn situations. The firm’s CEO, Phong Le, had shared recently that even if the BTC price loses 80% of its value, it would take many years for it to affect the firm’s business. This will give the Bitcoin treasury firm more time to restructure and cover the debts.

Meanwhile, Saylor has consistently maintained that Strategy has no intention to sell any of its coins. Also said, they would keep buying BTC at least in every quarter of the year.

Michael Saylor Maintains BTC Accumulation Plan

While the Bitcoin drawdown continues, the company has continued to maintain purchases. On Monday last week, they bought 1,142 BTC coins worth around $90 million. Following the trends, it may seem the firm is now buying more tokens than usual as the value drops further.

Yesterday, Michael Saylor made his regular Bitcoin tracker post, hinting at another buy later today. This is especially notable because the firm is currently down by over $5 billion in unrealized losses. Strategy’s MSTR stock has also continued to lose value as experts predict deeper losses.

However, the stock has continued to move positively with the positive signals from the firm. It jumped by around 10% in pre-market trading after Saylor hinted at another Bitcoin buy.

The founder recently made a case for the United States to be more proactive in its Strategic reserve, urging it to embrace Bitcoin as it did gold. He added that the government should also pass pro-BTC legislation to make sure innovation grows in the country.