Michael Saylor's Strategy says it can survive a bitcoin (BTC) price crash to $8,000

MicroStrategy (MSTR), led by Michael Saylor, stated it can withstand a Bitcoin price drop to $8,000 and still fully cover its roughly $6 billion in net debt. The company currently holds 714,644 BTC, valued at about $49.3 billion at current prices, which is over eight times the amount needed to cover its debt obligations. MicroStrategy plans to convert existing convertible debt into equity to avoid issuing more senior debt, as due dates for its debt are spread between 2027 and 2032. However, critics argue that an $8,000 BTC price would represent a massive paper loss on its average purchase price of $76,000, potentially making lenders hesitant to refinance. Furthermore, one analyst suggested that the plan to 'equitize' debt is a maneuver to ultimately dilute retail investors, as hedge funds holding convertible bonds may demand cash repayment instead of conversion if the stock price is low, forcing MicroStrategy to issue new shares.

(Source：CoinDesk)