MicroStrategy founder Michael Saylor announced the company’s plan to convert its $6 billion convertible bond debt into shares. This strategic move will significantly reduce the debt burden on the balance sheet and convert bondholders directly into shareholders. The company emphasized the strength of its BTC detailed analysis reserves, stating that even if the BTC price drops to $8,000, its portfolio of 714,644 BTC (worth approximately $49 billion) will fully cover the debt.
The firm claims convertible debt notes are fully covered even if Bitcoin tanks 88%. Source: StrategyMicroStrategy’s BTC Reserves and Debt Coverage Strength
The company realized an average BTC purchase price of $76,000, while the current BTC price is $68,717, putting it in an approximately 10% loss position. Despite this, the reserves are strong enough to cover the debts even in extreme scenarios. This move further strengthens MicroStrategy as an institutional BTC holder and provides resistance against market volatility.
BTC Current Technical Analysis: RSI and Trend Status
BTC fell to $68,717 with a -2.29% change over 24 hours. RSI at 35.98 level is giving an oversold signal, downtrend continuing while Supertrend is bearish. EMA 20 ($73,285) is above the price, carrying short-term recovery potential. The weekly candlestick chart has turned positive; 1 day 12 hours left to weekly close with an 8% rise from the lowest level.
BTC Support and Resistance Levels Table
| Level | Price (USD) | Score (/100) | Distance | Sources |
|---|---|---|---|---|
| S1 (Strong Support) | 65.062 | 69 ⭐ | -5.32% | Swing Low, ATR Lower, Fibo 0.114 |
| S2 (Strong Support) | 60.000 | 69 ⭐ | -12.69% | Fibo 0.000, Donchian |
| R1 (Strong Resistance) | 70.114 | 74 ⭐ | +2.03% | R3, Fibo 0.214, Prev Day Close |
| R2 (Strong Resistance) | 78.145 | 63 ⭐ | +13.72% | Fibo 0.382, EMA 50 |
MSTR Stock Rise and Saylor’s BTC Purchase Signal
MSTR stock rose 8.8% on Friday, closing at $133.88, but 70% below the July peak. Saylor gave a new BTC purchase signal with the accumulation chart he shared on X on Sunday; this will continue the 12-week uninterrupted buying series. In the BTC futures market, this signal may increase institutional demand.
Market News: BTC Weekly Recovery and ETF Options
NYSE American gave the green light to listing options for multi-crypto ETFs based on commodity-based funds. This development may increase BTC liquidity. BTC’s positive weekly chart close could stabilize MicroStrategy’s reserve value.
Impact of MicroStrategy’s Move on BTC Investors
This debt conversion turns MicroStrategy into a high BTC exposure vehicle. Risk is low for investors: even if BTC drops to $8,000, reserves are sufficient. In the short term, S1 $65,000 support may be tested; if broken, S2 $60,000 comes into play.
Source: https://en.coinotag.com/microstrategy-converts-6-billion-dollars-of-debt-into-shares
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