The Asset-to-Debt ratio of the Strategy is approximately 6x, with enough cash reserves to cover over 30 months of dividends
BlockBeats News, February 22nd, according to Barchart analysis, based on the latest announcement, Strategy holds 717,131 bitcoins. Based on the recent price, the value of these bitcoins is approximately $48.7 billion. In contrast, MSTR had a debt of $8.2 billion at the end of 2025. This is equivalent to the assets being nearly six times the liabilities. It is for this reason that Strategy CEO Phong Le had the confidence to point out during the earnings call that the price of Bitcoin would need to drop to $8,000 per coin and remain at this level for five to six years for the company to truly face difficulties in repaying its convertible bonds.
In addition, each Bitcoin held by the company is unencumbered, thus there is no risk of its Bitcoin being liquidated. As for the company's debt interest, MSTR needs to pay $888 million in dividends annually. To address this, the company has formulated a strategic plan to set aside $2.25 billion in cash reserves in Q4 2025, sufficient to cover over 30 months of dividends without needing to use any Bitcoin. It is worth noting that the first major debt maturity date is September 2027, providing MSTR with an adequate cushion.
Analysts believe that Strategy's real pressure lies not in its solvency but in its growth potential during a bear market. For reference, during the last bear market cycle (full year 2022), Strategy only acquired about 10,000 bitcoins, and the company's stock price remained below the value of its underlying assets for most of that year.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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