Amid a sharp decline in Bitcoin (BTC) prices, MicroStrategy, the largest institutional Bitcoin holder formerly known as Strategy, has issued an official statement addressing concerns about its financial health. The company emphasized that even if the price of Bitcoin falls to $25,000, it can maintain a solid financial position with a Bitcoin value-to-debt ratio above 2.0 times.
MicroStrategy currently holds approximately 649,870 BTC against approximately $16 billion in debt, resulting in a current Bitcoin value-to-debt ratio of 3.6 times. The company noted that if BTC drops to its average cost basis of $74,000, the ratio would be 5.9 times, a metric it refers to as the BTC Rating. This statement came in response to rumors of Bitcoin sales, which founder Michael Saylor denied, and follows the company's recent exclusion from the S&P 500 index and potential removal from other major indexes like MSCI.
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