Michael Saylor once again defended his company, Strategy, commenting on a chart showing how its Bitcoin reserves support its debt position even in the face of a severe downturn.
With Bitcoin trading at around $69,000, Strategy's Bitcoin reserves are valued at approximately $49.3 billion, while its net debt is $6 billion. This means the company's assets cover its debt 8.3 times.
Even in a worst-case scenario, if Bitcoin were to decline 88% to $8,000, the reserves would still be around $6 billion, corresponding to a net debt of $6 billion. In this case, the coverage ratio would be 1.0x, meaning the company would still be able to meet its obligations.
The chart also shows the debt structure. Strategy's convertible notes mature between 2027 and 2032, so the company won't have to repay them anytime soon. Furthermore, the firm plans to convert some of this debt into equity over time, rather than incurring additional debt.
Despite criticism of its strategy and the market decline, Strategy continues to increase its Bitcoin holdings. Last week, the company acquired 1,142 BTC worth approximately $90 million, buying up the depreciated asset.