Strategy was founded as a business intelligence company. michael sailorhas released new data explaining how Bitcoin (BTC) positions are holding up in current market conditions. These disclosures raise questions about whether the company can be forced to sell its products. Bitcoin holdings $54.59 billion. The latest internal outlook, shared publicly, highlights the company’s expectations for long-term sustainability while also calling for a closer look at the company’s historical facts. aggressive accumulation strategy.
Strategy ensures BTC holdings guarantee dividends for decades
Strategy Team stated This Thursday on Bitcoin transactions under $85,000The company has enough coverage to maintain its dividend obligations for 71 years even if prices remain the same. Additionally, if the price of Bitcoin rises more than 1.41% per year, that growth alone would completely negate the company’s dividend without needing additional funds.
Strategy shared its internal credit dashboard that tracks details such as debt maturity, term, interest exposure, and Bitcoin risk. The report shows total debt of $8,214 and the corresponding cumulative national value. Most of this comes from the company’s Bitcoin-linked preferred offering, which includes various STR series tranches for a total notional value of $15,993 for a total of $7,779.
The duration of these tools can range from less than 2 years to almost 10 years. BTC risk It’s concentrated in the low single digits. In total, the combined debt and preferred structure is $15,993. The company’s model also assumes a Bitcoin price of $87,300, 45% volatility, and an expected annual return of 30%.
According to Strategy, these figures indicate that the company has sufficient financial flexibility. The company has shown that its dividend coverage is not dependent on aggressive Bitcoin price rises. Although the balance sheets are linked BTC’s Market PerformanceStrategy’s internal credit analysis suggests it can withstand prolonged price fluctuations without having to liquidate its core holdings.
Saylor Faces Criticism Over Continued Bitcoin Purchases
Strategy as a separate update highlighted Actions for 2022 cryptocurrency winterThis was marked by a widespread market crash. When the price of Bitcoin fell to $16,000, it was roughly 50% of Strategy’s average cost basis at the time of $30,000. The company has raised its status Rather than pulling back.
This has reignited long-standing criticism from market participants who argue that the company’s approach relies too heavily on continuous averaging. SwanDesk CEO Jacob King criticize Seiler argues that the strategy’s founders failed to demonstrate actual investment capabilities.
King pointed out that the cryptocurrency has surged about 1,000% since Saylor first purchased BTC at around $11,000. By contrast, Strategy generated a 22% return over five years, which equates to about 4.4% per year. King described this performance as “horrible,” attributing it to the company’s seemingly flawed strategy of continually buying Bitcoin at higher prices.
The SwanDesk CEO also highlighted Saylor’s history in the technology sector, noting that he lost nearly 99% of his net worth during the dot-com era by tracking underperforming technology stocks and restating the company’s financials as follows: Investigation by the U.S. SEC.
Featured image by Getty Images, chart by TradingView
editing process for focuses on providing thoroughly researched, accurate, and unbiased content. We adhere to strict sourcing standards, and each page is diligently reviewed by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance, and value of the content for readers.
