MicroStrategy has reiterated that it could fully repay its $600 million debt even if Bitcoin were to drop to $8,000, representing an 88% decline from recent highs. The company notes it holds approximately $49.3 billion worth of Bitcoin at a price of $69,000 per BTC, and emphasizes that its convertible notes mature through 2032, a structure designed to avert immediate liquidation. An accompanying infographic maps debt-serviceability across various Bitcoin price levels, illustrating how close the cushion is to the point of strain.
CEO Pong Li acknowledged that even in a 90% price decline, the company would have time to respond with restructuring, additional capital, or debt refinancing over the coming years. He stressed that the scenario would unfold gradually rather than trigger an instant crisis. The plan also contemplates actions such as debt-for-equity swaps, extension of maturities, or partial haircuts if conditions deteriorate.
Across the trajectory from $8,000 down toward $6,000 and below, leverage and liquidity pressures intensify. At around $6,000, total assets would fall well short of total liabilities, risking losses for unsecured creditors and potentially prompting balance-sheet adjustments. If Bitcoin were to fall further toward $5,000 or less, forced liquidations by collateral lenders become more plausible, and the risk of systemic stress in the market could rise as liquidity tightens.
Leave a Reply