Since the fall of bitcoin, Strategy's strategy has worried many people. Faced with this, the company has just unveiled a new tool. A maneuver to reassure crypto investors and maintain its role as an institutional pillar. More details in the paragraphs that follow!
In brief
- Strategy launches a BTC Rating to reassure the markets after the marked drop in bitcoin.
- The company claims 70 years of financial margin, even if the price of bitcoin remains stagnant.
Strategy counterattacks with a BTC Rating
THE BTC Rating is an indicator expressly designed by Strategy. It is meant to reflect the strength of the company's debt, following recent turmoil in the bitcoin market.
More explicitly, the BTC Rating is based on the notional value of preferred shares. It shows that even if bitcoin drops to $74,000 (its average purchase price), Strategy retains an asset/debt ratio of 5.9. If the price collapses to $25,000, the ratio will remain at 2.
In both cases, the cash flow would pay dividends for 70 years. A projection that some consider ambitious, but credible in a flat market scenario.
This communication aims to dispel the fear of a domino effect on the shares of companies linked to digital assets, often called DATs (Digital Asset Treasuries). THE BTC Credit Dashboard published by Strategy centralizes this key data.
Debt, dividends and mNAV: the new equation for the strength of the bitcoin strategy
In parallel with this BTC Ratinganother indicator attracts attention: the mNAV (Market Net Asset Value). This index compares enterprise value to that of crypto holdings (particularly bitcoin).
With a score of 1.16, Strategy can therefore still theoretically raise funds through the issuance of shares. A capacity that certain players in difficulty like Bitmine and Sharplink Gaming no longer have.
Some analysts confirm this solidity. According to them, the dividend strategy holds up in the long term (unless there is a sudden change in regulation). For others, Strategy's continued accumulation of bitcoin could curb future falls by absorbing some of the supply. These reserves, considered “off-market”, thus block additional selling pressure.
While the crypto market remains volatile, the signals sent by Strategy strengthen its position as an institutional stronghold of bitcoin. The company is becoming a reference to follow in crypto risk assessment.
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