Michael Saylor Says Strategy Can Cover Debt Even If Bitcoin Crashes to $8,000

Michael Adeleke
2 hours ago Updated 34 seconds ago
Michael Adeleke

Michael Adeleke

Crypto Journalist
Expertise : Cryptocurrency, Blockchain, DeFi
Michael Adeleke is a passionate crypto journalist known for breaking down complex blockchain concepts and market trends into clear, engaging narratives. He specializes in delivering timely news and sharp market analysis that keeps crypto enthusiasts informed and ahead of the curve. With an engineering background and a degree from the University of Ibadan, Michael brings analytical depth and precision to every piece he writes.
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CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Michael Saylor maintains Strategy can cover Bitcoin loss

Highlights

  • Michael Saylor says Strategy can fully cover its debt even if Bitcoin crashes by 88% to $8,000.
  • The firm plans to convert its convertible debt into equity over the next 3–6 years.
  • This would reduce balance-sheet risk without issuing new senior debt.

Michael Saylor has once again reiterated that his Bitcoin treasury firm, Strategy, can withstand more dips in the value of the BTC price. He shared plans on how the company would control its debt in the future.

Strategy Says It Can Survive a Bitcoin Drop to $8,000

In recent posts, the Treasury firm and Michael Saylor confirmed that the company can cover its debts even if the Bitcoin price were to crash to $8,000. They shared a chart highlighting how it currently holds $6 billion in net debt, and in the case where there is a 88% crash in BTC price, its reserve value would still remain in the range of its net debt.

Source: X

Saylor also shared that the plan was to equitize Strategy’s convertible debt over the next 3-6 years. This would reduce the debt on the balance sheet by issuing stock instead, avoiding new senior debt issuance.

These convertible notes are serviceable, which gives the company breathing room or ‘security’ in downturn situations. The firm’s CEO, Phong Le, had shared recently that even if the BTC price loses 80% of its value, it would take many years for it to affect the firm’s business. This will give the Bitcoin treasury firm more time to restructure and cover the debts.

Meanwhile, Saylor has consistently maintained that Strategy has no intention to sell any of its coins. Also said, they would keep buying BTC at least in every quarter of the year.

Michael Saylor Maintains BTC Accumulation Plan

While the Bitcoin drawdown continues, the company has continued to maintain purchases. On Monday last week, they bought 1,142 BTC coins worth around $90 million. Following the trends, it may seem the firm is now buying more tokens than usual as the value drops further.

Yesterday, Michael Saylor made his regular Bitcoin tracker post, hinting at another buy later today. This is especially notable because the firm is currently down by over $5 billion in unrealized losses. Strategy’s MSTR stock has also continued to lose value as experts predict deeper losses.

However, the stock has continued to move positively with the positive signals from the firm. It jumped by 10% on Friday even after the earnings report release.

The founder recently made a case for the United States to be more proactive in its Strategic reserve, urging it to embrace Bitcoin as it did gold. He added that the government should also pass pro-BTC legislation to make sure innovation grows in the country.

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Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more… to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

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About Author
About Author
Michael Adeleke is a passionate crypto journalist known for breaking down complex blockchain concepts and market trends into clear, engaging narratives. He specializes in delivering timely news and sharp market analysis that keeps crypto enthusiasts informed and ahead of the curve. With an engineering background and a degree from the University of Ibadan, Michael brings analytical depth and precision to every piece he writes.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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