Strategy founder Michael Saylor has responded to ongoing discussions suggesting the company could face a forced sell-off as Bitcoin’s price continues to decline. He said Strategy can still manage its debt even if Bitcoin crashes 88% to $8,000
As a result, even if Bitcoin crashes 88% to $8,000, the value of Strategy’s Bitcoin holdings would drop to roughly $6 billion, almost equal to its net debt. This creates a 1.0x coverage ratio, meaning the company would still have enough assets to cover what it owes.
Will Strategy Continue to Raise Funds, If BTC drop To $8K
Despite all, Bitmern Mining founder Giannis Andreou has raised concerns about the strategy’s ability to continue raising capital in the future.
He said the $8,000 Bitcoin scenario was presented as a stress test to show strength. However, the real question is not just survival after a sharp crash. But the question is whether Strategy can keep raising capital at reasonable costs.
This becomes harder if a long bear market continues and Bitcoin stays weak.
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