Michael Saylor's MicroStrategy is unlikely to face bankruptcy despite recent declines in Bitcoin prices, according to analysis. Speculation has arisen that the company could go bankrupt if Bitcoin's price falls below certain levels, such as $76,000, $50,000, or $40,000. However, data suggests otherwise, as MicroStrategy's Bitcoin holdings are valued at approximately $49.4 billion, significantly outweighing its $8.2 billion in debt.
The company also maintains a USD cash reserve of around $2.25 billion, which can cover its annual dividend payments of $890 million for 2.5 years without needing to sell any Bitcoin. Historically, MicroStrategy has not sold its Bitcoin holdings even during significant price drops, and it is expected to continue this strategy, potentially buying more during market dips.
Michael Saylor's MicroStrategy Unlikely to Face Bankruptcy Despite Bitcoin Price Drop
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