Strategy CEO Insists Bitcoin Can Drop to $10,000 Without Hurting Company
Strategy's CEO Phong Le has made a bold claim about the potential price of Bitcoin. He believes that even if the cryptocurrency drops to $8,000-$10,000, it won't put too much stress on the company's balance sheet.
The current price of Bitcoin is around $63,000, which means an 86% decline would be a significant drop. However, Le claims that Strategy could manage this turbulent period due to its strong financial position.
The math behind his view is straightforward: at a price of $9,000, the company's Bitcoin stack of 843,775 units would be worth $7.6 billion, which is more than the notional convertible debt balance of $6.7 billion.
Strategy also has a U.S. dollar reserve of nearly $3.8 billion, which alone would cover 25 months of interest and dividend payments. If Bitcoin's price doesn't recover, Strategy could start selling off the digital asset to repay its creditors.