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MicroStrategy Defines 'BTC Rating' to Assure Investors on Debt Coverage
11/26/2025, 04:06
AI SUMMARY
●• MicroStrategy asserts 5.9x debt coverage at its average BTC cost basis of $74,000
●• The coverage ratio remains at 2.0x even if Bitcoin prices fall to $25,000
●• The statement addresses investor concerns regarding convertible debt leverage
MicroStrategy has issued a statement clarifying its asset coverage relative to convertible debt, a metric it terms "BTC Rating." The company highlighted that even if Bitcoin's price were to retrace to their average cost basis of approximately $74,000, their Bitcoin holdings would still cover the convertible debt by a factor of 5.9x.
Furthermore, the firm provided a stress-test scenario, noting that even at a Bitcoin price of $25,000, the coverage ratio would remain at 2.0x. This communication aims to alleviate concerns regarding the company's leverage and solvency in potential bear market scenarios.
The clarification comes as the firm continues its aggressive Bitcoin acquisition strategy, using the rating to demonstrate balance sheet resilience against significant market downturns.