Strategy holds 714,644 bitcoins worth about $49 billion as of writing time, according to its website. The company has more than $8 billion in total debt on its balance sheet, partly due to convertible notes used to buy bitcoin. Strategy has two-and-a-half years worth of cash on its balance sheet to cover dividends.
CEO Michael Saylor brushed off concerns about the company’s credit risk if bitcoin continues to tumble, saying the volatility of bitcoin ensures its value over time. He reiterated that Strategy’s plan is to keep accumulating bitcoin, stating, “I expect we’ll be buying bitcoin every quarter forever.” He also said that if bitcoin falls 90% for the next four years, we’ll refinance the debt, and we’ll just roll it forward.
Bitcoin’s price movement has weighed on the market, with bitcoin trading around $68,970.45, down 9% over the past five days, after slipping to roughly $60,062 earlier in the week for its lowest level in about 16 months. Strategy’s stock has fallen more than 40% over the past three months, and the company shed about 2% on Tuesday as bitcoin dipped below $70,000.
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