Michael Saylor has given an optimistic view on Strategy’s convertible debt despite the current market downturn. According to Saylor’s official announcement, Strategy is trying to calm nerves around its Bitcoin-heavy balance sheet.
The company said that even if Bitcoin were to plunge to $8,000, it would still have enough assets to fully cover its outstanding debt. The message is clear: even in a worst-case scenario, the company believes it can meet its obligations.
Founder Saylor also outlined a longer-term plan to convert the firm’s convertible debt into equity over the next three to six years. That would ease repayment pressure and reduce financial risk over time.
The statement comes against the backdrop of the crypto market facing a slump, with prices falling to fresh lows since 2024.
The plan reflects Strategy’s confidence in its capital structure, and its continued commitment to Bitcoin, despite the extreme volatility that defines the crypto market.
Strategy’s Bitcoin gains vanish amid market downfall
The statement comes after media reports had previously reported that Strategy had seen an estimated $47 billion in paper profits evaporate as Bitcoin pulled back from its highs.
The estimated losses are now higher than the previous value since Bitcoin has pulled back further. When Bitcoin surged to its all-time high of $126,000 in October last year, the holdings translated into roughly $47 billion in unrealized gains.
However, as Bitcoin’s volatility triggered a broader market downturn, much of that paper profit disappeared. Despite the swings, Saylor has maintained there is no scenario in which he would sell the company’s Bitcoin holdings.
Crypto market bloodbath continues
Crypto markets had a rough day, with prices sliding across most major tokens. Bitcoin fell 2.56 percent to $68,467, while Ethereum dropped a steeper 6 percent to $1,959.
The mood shift seems driven by caution. Investors are cutting back on riskier assets like crypto because they think U.S. interest rates could stay high for a longer time. Some people are also selling to lock in their profits after recent gains.
Many traders seem to be choosing patience over bold moves because of ongoing economic uncertainty and worries about regulations.