During a recent earnings call, Strategy CEO Phong Le reassured investors about the company's resilience to current Bitcoin price fluctuations. He explained that only in an extreme scenario—where Bitcoin drops 90% to $8,000 and remains at that level for five to six years—would there be a potential threat to the company's ability to service convertible debt.
Le emphasized that even in such a bearish scenario, the company would still have multiple options. He noted that when Bitcoin reserves match net debt, the firm might consider restructuring, issuing new equity, or taking on additional debt to maintain financial stability.
Overall, the company's balance sheet remains strong with sufficient liquidity to weather short-term market swings. This statement provided investors with confidence in the company's ability to handle volatility and manage financial risks effectively.