The legacy Bitcoin treasury company Strategy (formerly MicroStrategy) would still be fine and work well even if BTC price crashes to $20K, says Chaitanya Jain, the Bitcoin Strategy Manager at the firm.
While the company has been debt raising, market analysts raised concerns over the company’s health if Bitcoin sees dips, which is usually seen in correction phases. Clarifying this Jain shared the firm’s Credit Model in one of his latest X post and emphasized that Strategy will still have enough collateral to look after all the liabilities.
The remarks from Jain comes ahead of discussions around Bitcoin hitting a new all-time high of $123,091 on July 14 and crypto enthusiasts speculate on its price trajectory further. The mixed predictions on Bitcoin sparked debate between bullish and bearish scenarios.
As of latest data, Strategy currently holds 601,550 BTC acquired for $42.87 billion–at an average cost of $71,268 per coin. This holding is currently valued at approximately $72.19 billion, marking a staggering profit of nearly $30 billion.
Since August 2020, Strategy has been at the forefront of institutional Bitcoin purchases with the company regularly acquiring a notable amount of BTC under Michael Saylor’s leadership.
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