en.bitcoinsistemi.com
While the sharp decline in Bitcoin (BTC) continues to negatively impact investors and the market, the largest institutional Bitcoin whale, Strategy (formerly MicroStrategy), has also been affected.
While the BTC price and Strategy's cost base approached $74,000, there were many reports that Strategy was selling Bitcoin and would do so.
While company founder Michael Saylor categorically denied the allegations that he sold BTC, an official statement came from the company.
At this point, Stratgy said that even if the price of Bitcoin drops to $25,000, it can maintain its financial health.
Strategy (MSTR) emphasized that its financial position will remain solid even if the price of Bitcoin falls to $25,000, stating that the ratio of the value of its Bitcoin assets to its debt will be maintained above 2.0 times.
The company also noted that even if Bitcoin were to fall to its average cost floor of $74,000, its BTC holdings would cover its convertible debt by 5.9 times. This ratio is referred to by the company as the “BTC Rating.”
“If BTC falls to our $74,000 average cost basis, our asset-to-convertible debt ratio is still 5.9x, and that's what we call our debt BTC Rating.
At $25,000 BTC, this ratio will be 2.0 times.”
The company currently holds approximately 649,870 BTC against approximately $16 billion in debt, and its Bitcoin value-to-debt ratio stands at 3.6x.
This statement came after concerns were raised about Strategy's recent failure to be included in the S&P 500 index and the possibility of its removal from other major indexes such as MSCI.
*This is not investment advice.