@kendu
After Bitcoin’s sharp drop, MicroStrategy’s stock was heavily sold off amid fears that the company could face debt risks and be forced to liquidate its BTC holdings. To reassure investors, MicroStrategy released a new credit metric showing that the firm remains financially very safe.
The company stated that:
• Even if Bitcoin goes sideways, they can operate and stay solvent for 70 years.
• If BTC drops to $74,000, their assets would still be 5.9× larger than their liabilities.
• If BTC falls to $25,000, their assets would still be 2× their debt.
CryptoQuant’s CEO commented that:
MicroStrategy is highly unlikely to sell any BTC even in a bear market, which helps prevent the broader market from collapsing to dangerous price levels.
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