MicroStrategy's 714,644 Bitcoin Holdings Cover $6.0B Debt Even If Price Falls 88%
MicroStrategy holds 714,644 Bitcoin, equating to $49.3 billion of assets against $6.0 billion net debt, for an over 8x coverage ratio at current levels. Even if Bitcoin drops 88% to $8,000, its $6.0 billion in reserves would still match its net debt, maintaining a 1.0x coverage ratio.
1. Bitcoin Reserves
MicroStrategy acquired 714,644 Bitcoin to date, representing 3.4% of the 21 million supply and valued at roughly $49.3 billion at recent price levels.
2. Debt and Coverage
The firm carries approximately $6.0 billion in net debt against its Bitcoin assets, resulting in an over 8x coverage ratio under current valuations.
3. Extreme Downside Scenario
If Bitcoin falls 88% to $8,000, the reserves would shrink to about $6.0 billion, matching net debt and yielding a 1.0x coverage ratio.
4. MSCI Index Exclusion Risk
In 2026, MSCI proposed excluding companies with more than half their balance sheets in digital assets but deferred the decision, alleviating concern over potential index removal.