BlockBeats news, February 22, according to Barchart analysis, based on the latest announcement, Strategy holds 717,131 bitcoins. At recent prices, this batch of bitcoins is worth approximately $48.7 billion. In comparison, MSTR’s debt by the end of 2025 is $8.2 billion. This means assets are nearly six times the liabilities. Precisely because of this, Strategy CEO Phong Le confidently stated during the earnings call that the bitcoin price would need to drop to $8,000 per coin, and remain at this level for five to six years before the company would face real difficulties in repaying the convertible bonds.
Furthermore, each bitcoin held by the company is unencumbered, so there is no risk of liquidation for its bitcoin holdings. As for the company’s debt interest, MSTR needs to pay $888 million in dividends annually. To address this, the company has developed a strategic plan to set aside $2.25 billion in cash reserves in the fourth quarter of 2025, sufficient to cover over 30 months of dividends without using any bitcoin. Notably, the first major debt maturity date is September 2027, providing MSTR with ample buffer time.
Analysis suggests that Strategy’s real pressure is not solvency, but its growth capability during bear markets. For reference, Strategy only accumulated about 10,000 bitcoins during the last bear market (throughout 2022), while the company’s stock price remained below the value of its underlying assets for most of that year.
