Strategy unveils new credit gauge to calm debt fears after Bitcoin crash
Strategy said it has a 70-year dividend runway even after Bitcoin’s slide, rolling out a new credit rating metric to ease fears over DAT liquidation risks.
Michael Saylor’s Strategy is attempting to calm investor concerns about its balance sheet after the recent Bitcoin market downturn and a sharp pullback in digital asset treasury (DAT) stocks.
Strategy, the world’s largest corporate Bitcoin (BTC) holder, has rolled out a new credit rating dashboard based on the company’s preferred stock notional value, and claims to have another 70 years’ worth of dividend payment runway to service its debt, even if Bitcoin’s price remains flat.
“If $BTC drops to our $74K average cost basis, we still have 5.9x assets to convertible debt, which we refer to as the BTC Rating of our debt. At $25K BTC, it would be 2.0x,” said Strategy in a Tuesday X post.