MicroStrategy’s CEO states the firm can withstand Bitcoin falling to $8,000-$10,000 without financial strain due to cash reserves and debt coverage.
MicroStrategy CEO Phong Le said Bitcoin could decline to $8,000-$10,000 without pressuring the company’s balance sheet. Bitcoin is currently trading at around $63,000, down 49% from its record high, while MSTR shares have fallen 80% from their peak.
At a Bitcoin price of $9,000, MicroStrategy’s 843,775 Bitcoin holdings would be worth $7.6 billion, exceeding its $6.7 billion convertible debt. The company also holds $3.8 billion in cash reserves, covering 25 months of interest and dividend payments.
Le’s comments aim to reassure investors amid market volatility, though a further Bitcoin decline would likely weigh on MSTR’s stock price.