The post Strategy’s Bitcoin Covers Debt Nearly 6 Times Even if Price Dips appeared first on Coinpedia Fintech News
Strategy stated that even if Bitcoin falls to its average cost basis of $74,000, its Bitcoin holdings would still cover its $8.2 billion convertible debt by 5.9 times, a ratio the company calls its “BTC Rating.” At a Bitcoin price of $25,000, coverage would remain at 2 times. Despite this, Strategy was recently excluded again from the S&P 500 Index, adding pressure amid Bitcoin’s price drop. The company’s strong BTC backing offers reassurance to investors.