MicroStrategy Unveils Bitcoin Risk Dashboard with Credit Model
MicroStrategy has unveiled a new credit model that assigns a risk rating to each of its instruments, including convertible notes and preferred stock. The model uses a 10% annual Bitcoin return as a reference case and color-codes spreads by tier, from investment grade to distressed.
The tool is based on the company's balance sheet, which carries $6.71 billion in convertible notes alongside several preferred stock series. As of the second quarter, MicroStrategy held 843,775 BTC, valued at around $63,758 per coin.
According to the model, each instrument receives a credit spread, rating, and collateral reading. The floor prices show how much Bitcoin sits behind every dollar MicroStrategy owes its bondholders and preferred shareholders. If the price of Bitcoin falls below these levels, instruments become undercollateralized.