Company highlights multi-decade dividend capacity and strengthened balance-sheet resilience amid volatile digital-asset conditions
Amid growing concerns over the health of digital-asset treasury firms following Bitcoin’s sharp decline, Strategy has launched a new credit-rating gauge intended to clarify its debt standing and calm fears of potential liquidation. The company, the largest corporate holder of Bitcoin, says its financial position remains durable even under prolonged market stress, supported by long-term cash flow and an extended dividend runway.
Strategy Reinforces Financial Cushion
The firm unveiled a credit dashboard built around the notional value of its preferred stock, offering a more transparent view of how its digital-asset holdings compare with outstanding obligations. According to Strategy, this measure shows significant protection even under severe price pressure.
If Bitcoin were to fall to the company’s average cost basis of $74,000, Strategy reports it would still hold 5.9 times more assets than its convertible debt. Under a deeper decline toward $25,000, the buffer would remain at 2.0 times coverage.
The move comes as investors increasingly question whether falling crypto prices could force major digital-asset treasuries into selling, potentially accelerating market declines. Strategy aims to counter that narrative by pointing to what it describes as 70 years of dividend-payment capacity, even if Bitcoin remains flat for decades.
Analysts See Limited Liquidation Risk
The company’s ongoing Bitcoin acquisitions, the researcher added, have contributed to broader market stability and helped reinforce institutional confidence.
Other market specialists argue that Strategy’s strong financial position could influence Bitcoin’s performance in future downturns, noting that large holders capable of avoiding forced selling may help keep the asset above key psychological thresholds.
Strategy’s mNAV stood at 1.16 at the time of writing, meaning the company could still theoretically issue new shares to raise additional capital, according to Strategy’s dashboard.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.