Strategy is a business intelligence company founded by. michael saylorhas released new data outlining how Bitcoin (BTC) positions hold up under current market conditions. This disclosure raises the question of whether the company could be forced to sell. Bitcoin holdings are $54.59 billion. The latest published internal forecasts highlight the company's expectations for long-term sustainability, while also inviting scrutiny of the company's historical performance. Aggressive accumulation strategy.
Strategy ensures that BTC Reserve covers dividends for decades
strategy team said This Thursday on X, Bitcoin is trading below $85,000even if prices are flat, the company has enough coverage to maintain its dividend obligation for 71 years. Furthermore, if Bitcoin's price grows by more than 1.41% per year, that growth alone will completely negate the company's dividend, without the need for additional capital.
Strategy shared an internal credit dashboard that tracks details such as debt maturity, term, interest rate exposure, and Bitcoin risk. The report shows a total debt of $8,214 and a matching national cumulative value. The bulk of this comes from the company's Bitcoin-linked preferred products, including various STR series tranches, totaling $7,779, with a total notional amount of $15,993.
The duration of these instruments ranges from less than two years to nearly 10 years. BTC Risk Concentrated in the low single digits. All in all, the debt and preference structure totals $15,993. The company's model assumes a Bitcoin price of $87,300, volatility of 45%, and expected annual return of 30%.
Strategy says these numbers show the company has sufficient financial flexibility. The company has shown that the safety of its dividend does not depend on an aggressive increase in the price of Bitcoin. Although the balance sheets are linked, BTC market performanceAccording to Strategy's internal credit analysis, the company can withstand extended periods of sideways price fluctuations without liquidating its core holdings.
Saylor faces criticism for persistent Bitcoin purchases
In another update, the strategy highlighted Initiatives in 2022 Cryptocurrency winterwhich was marked by a widespread market collapse. When the price of Bitcoin fell to $16,000 (about 50% of Strategy's average cost base of $30,000 at the time), The company improved its status Rather than retreating.
The findings resurfaced long-standing criticism from market participants who say the company's approach relies too much on continued average price increases. Jacob King, CEO of SwanDesk, said: criticized Saylor argued that Strategy's founders have shown no real investment ability.
King noted that the cryptocurrency has surged about 1,000% since Saylor first bought BTC for about $11,000. In contrast, Strategy has generated only a 22% return over five years, which equates to about 4.4% per year. King described the performance as “terrible” and attributed it to the company's seemingly flawed strategy of continuing to buy Bitcoin at high prices.
SwanDesk's CEO also highlighted Saylor's background in tech, noting that he chased underperforming tech stocks during the dot-com era and wiped out nearly 99% of his net worth by recalculating the company's financials. US SEC oversight.
Featured image from Getty Images, chart from TradingView
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