MicroStrategy has publicly reassured its bondholders that its Bitcoin holdings are more than sufficient to cover its debt obligations. In a statement addressing recent market turbulence, the company asserted that the value of its Bitcoin assets is nearly six times the value of its convertible notes, providing a substantial cushion even if the price of Bitcoin were to fall significantly. This assurance comes after a period of intense selling pressure on MSTR stock, which has been impacted by reports of large institutional investors reducing their positions. Concerns have grown around the company's leveraged strategy and the risk of being excluded from major indices like the MSCI, which could trigger billions in forced selling. The company's stock premium relative to the value of its crypto holdings has also reportedly collapsed. The statement on a U.S. holiday aims to stabilize investor confidence amid the sharp downturn in its stock price. It directly counters the narrative of financial distress that has circulated in recent market analyses.
MicroStrategy Assures Investors Its Bitcoin Hoard Covers Debt Nearly 6x Amid Market Pressure
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