Strategy company, which is known for its large investments in Bitcoin and has been frequently on the agenda in the market lately, revealed updated data on its debt structure and preparations against possible risks in a presentation it shared. The company, which operates under the leadership of Michael Saylor, emphasized the resilience of its balance sheet against serious declines that may occur in the price of Bitcoin.
Current Financial Situation and Balance Sheet Details
According to the data shared by the company, the total value of Bitcoins in its portfolio reaches 49.3 billion dollars when the price is at 69 thousand dollars. Net debt stands at $6 billion. This means that the company’s Bitcoin assets are approximately eight times greater than its debt. Net debt is defined as the difference between the sum of all debts and USD reserves.
Stress Test: 88 Percent Drop Scenario
The strategy also evaluated one of the harshest possible market scenarios. Accordingly, if the price of Bitcoin decreases by 88 percent to 8 thousand dollars, the total value of Bitcoins held decreases by up to 6 billion dollars. While net debt remains at 6 billion dollars, the asset-debt ratio decreases to 1; Even in such a scenario, the company states that it can continue to meet all its debts thanks to the amount of Bitcoin it has.
According to the company’s statement, “Even if the Bitcoin price drops by 88 percent, the amount of Bitcoin the company has will cover all its debt and there will be no financial problems.”
Debt Structure and Maturity Profile
The strategy also shared remarkable data regarding debt maturity and redemption dates. The maturity and redemption dates of the convertible bonds held by the company are distributed between 2027 and 2032. This structure reduces refinancing pressure in the short term.
Management states that it plans to convert existing convertible debt into equity over time and does not intend to issue additional senior debt. This approach was developed to limit the risk of forced sales in case of sharp fluctuations in the markets.
The company stated that this borrowing policy provides a buffer against sudden liquidity problems that may arise from possible price volatility.
In light of all these indicators, it seems that the current balance sheet and debt structure has been planned in a way that will not cause a serious liquidity crisis even in a high volatility environment. However, it is also stated in industry circles that a possible long-term decline could put pressure on market confidence, share performance and access to finance.
