MicroStrategy's Debt Strategy Hinges on Bitcoin's Long-Term Growth

MicroStrategy CEO Phong Le has outlined the company's approach to managing its convertible debt, emphasizing that significant pressure would only arise if Bitcoin's price dropped to $8,000 and stayed at that level for five years. According to NS3.AI, Le highlighted that the company's debt strategy relies on Bitcoin's historical average annual growth rate of about 30%. He further noted that as long as funding costs remain below approximately 20%, the strategy continues to generate value for shareholders. Le also stated that the company aims to maintain yield stability even if Bitcoin's price experiences substantial increases.