Strategy, a pioneer in the Bitcoin treasury model, is facing an unrealized loss of $6.5 billion on its Bitcoin holdings as the cryptocurrency's price slumps. The company's BTC stash, acquired at an average cost of $54.52 billion, is now valued at $48.02 billion, representing an 11.92% decline. Despite the downturn, Strategy maintains it can manage its financial obligations, even if Bitcoin's price drops to $8,000.
Arkham Intelligence reports that Strategy's financing structure, which relies on equity issuance and convertible debt, provides flexibility in managing liabilities. The company has about $8 billion in convertible debt against $2.5 billion in cash, but selling Bitcoin is considered a last resort. Strategy recently purchased an additional 2,486 BTC, signaling confidence in its financial strategy despite market volatility.
Strategy Faces $6.5 Billion Paper Loss on Bitcoin Holdings Amid Price Slump
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