Strategy disclosed that it still considered its balance sheet to be safe until Bitcoin fell to between $800 and $10,000. Chief Executive Officer Phong Le stated that only when prices entered the zone would companies assess debt-related risks.
Pressure test range
At the current price of bitcoin of about $6.45 million, the above-mentioned zone corresponds to a drop of about 85 per cent. In an interview with Bloomberg television, Le stated that the current focus of the company was to build a capital structure that could withstand the bear market while retaining the flexibility of the gains in the rising cycle.
United States dollar reserves are the focus.
Le also indicated that an increase in the United States dollar reserve was one of the main measures of recent management concern. The company believes that maintaining fast-track United States dollar liquidity is important both to stabilize the performance of financing instruments and to respond to market fluctuations, and will continue to do so.
STRC's pressure is up.
Strategy ' s preferred share STRC aims to provide the company with a cash flow to support the purchase of bitcoin and to pay fixed dividends to investors. The product currently has an annualized dividends rate of 13 per cent and is designed to maintain a nominal value of $100.
However, in recent months, the STRC has been under pressure, falling $100 in April, falling below $75 in late June and rising to about $90 in the near future. Le believes that an increase in the United States dollar reserve is one of the important means of facilitating its rehabilitation.
It's still down 36% in MSTR.
The Strategy General Unit of MSTR rose by nearly 6 per cent on Tuesday, reporting $97.58, but still fell by about 36 per cent during the year, about 78 per cent less than 12 months ago. As one of the largest listed companies with Bitcoin, Strategy ' s financing structure and liquidity arrangements remain the focus of market attention.