MSTR Unveils Public Bitcoin Credit Model Amid $108.6 Million Sale

Michael Saylor's MicroStrategy (MSTR) has unveiled a public Bitcoin Credit model to show investors how its BTC holdings cover debt and preferred stock obligations.

The dashboard comes as Bitcoin struggles to hold above $65,000 and remains well below its October record high. MSTR started selling portions of its Bitcoin holdings in June after years of having a 'never sell' stance.

At the time of writing, Strategy's model values its reserve at $53.85 billion. It assumes Bitcoin will return 10% annually but calculates that only a 3.22% annualized return would be needed to meet its obligations.

The company has about $6.71 billion of convertible debt spread across six tranches maturing between 2028 and 2032, with the nearest-term 2028 convertible having 173.5x Bitcoin coverage.