Strategic Shift: Converting Debt into Equity
Michael Saylor, founder of Strategy, recently revealed plans to convert the company's $6 billion in convertible debt into equity within the next 3 to 6 years. This strategic move aims to strengthen the company's equity base and long-term financial stability.
Strong Bitcoin Holdings Ensure Liquidity
Despite market volatility, Strategy maintains a robust financial position. The company currently holds 714,644 BTC, valued at around $49 billion, significantly exceeding its $6 billion in convertible debt. Even if Bitcoin's price were to drop to $8,000, the company would still be able to fully cover its obligations.
- Current BTC holdings: 714,644
- Average purchase price: ~$76,000
- Current trading price: $68,400 (10% unrealized loss)
Signs of Further Accumulation
Saylor shared a BTC accumulation chart on X, hinting at potential new purchases. If realized, this would mark the 12th consecutive week of Bitcoin buying, reinforcing the firm's bullish stance on digital assets.