MicroStrategy (MSTR) is underneath strain to liquidate its Bitcoin holdings attributable to its long-term debt-raising plan, Bernstein stated in a notice.
However solely within the occasion of an excessive value correction, significantly across the mid-2025 debt maturity.
Rising Bitcoin costs imply MicroStrategy has a stronger steadiness sheet, greater inventory value, and simpler debt repayments with out having to promote its cryptocurrency holdings, in response to the report.
Moreover, excessive bitcoin costs and a better inventory value permit the corporate to lift new debt or fairness and redeem present convertible notes.
Conversely, if Bitcoin crashes, reaching a completely depressed value, the worth of MicroStrategy’s cryptocurrency holdings can’t cowl debt and a few liabilities after June 2025, and the company construction will likely be underneath the strain of the prepayment clause.
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