MicroStrategy says 714,644 BTC cover $6B debt even after 88% crash
Strategy holds 714,644 Bitcoin (3.4% of supply) valued at about $49.3 billion against a $6 billion net debt at current prices. Management asserts its assets still fully cover debt even if Bitcoin plunges 88% to $8,000, maintaining a 1.0x debt coverage ratio.
1. Bitcoin Holdings and Valuation
Strategy holds 714,644 Bitcoin, representing 3.4% of the total 21 million supply. At a current price of roughly $69,000 per BTC, these reserves are valued at about $49.3 billion, compared with a net debt of approximately $6.0 billion.
2. Debt Coverage Assurance
CEO Phong Le stated on its X account that even in an extreme 88% Bitcoin price crash to $8,000, Strategy’s holdings would still equal its $6.0 billion debt, resulting in a 1.0x coverage ratio and full debt repayment capacity.
3. MSCI Index Consideration and Balance Sheet Context
Concerns had arisen after MSCI proposed to exclude companies with over 50% digital assets, potentially removing Strategy from key indexes. The company’s recent debt coverage assertion follows MSCI’s decision to defer that exclusion assessment, addressing investor concerns about balance sheet risks.