Strategy is trying to calm concerns after the fall of BTC by introducing a ‘BTC Credit Rating’, designed to measure the strength of its balance sheet in the face of volatility and convertible debt.
Introducing a New Metric to Reassure a Tense Market
The company claims a strong safety margin, with an asset/debt ratio still at 5.9x if BTC returns to 74,000 and 2.0x even in case of a drop to 25,000, all while maintaining strong cash flow through its software business.
The DAT sector remains under pressure with several struggling players and often mNAV below 1, while Strategy has limited maneuverability.
The timing is no coincidence. While the crypto market is still panicking after the latest blow to Bitcoin, Strategy, the world’s largest corporate holder of BTC, unveils a new indicator aimed to dispel doubts about its ability to withstand the storm. The company reveals an internal dashboard: a ‘BTC Credit Rating’ designed to measure the strength of its balance sheet in the face of market volatility. A clear message is being sent: the debt remains under control.
If BTC falls back to our average cost of 74,000, we still have an asset/debt ratio of 5.9x. At 25,000, it would be 2.0x.
Message from Strategy on X
A message directly aimed at calming concerns related to the risk of liquidation in the Digital Asset Treasury (DAT) segment, a sector in doubt since the sharp drop in prices.
A Financial Structure Still Far from Breaking Point
For now, Strategy remains in a comfortable zone, although the projection of 71 years of dividend payment capacity may seem unrealistic. Long-term scenarios will always depend on external uncertainties such as macro factors or extreme crypto market cycles.
The company also benefits from an often underestimated factor in the debate: its historic B2B software business, still generating ‘robust’ cash flow, supporting the continuous accumulation strategy of BTC and especially the repayment of debts. This combination significantly reduces the chances of forced liquidation.
DATs Remain Under Pressure Nonetheless
Despite Strategy’s advantageous position, several players in the DAT sector have suffered heavy losses in recent days: Bitmine, Metaplanet, Sharplink Gaming, Upexi, and DeFi Development Corp have seen their stock and mNAV decline significantly, often well below 1.
The mNAV, a ratio between the enterprise value and the value of crypto held, remains a crucial indicator to assess the ability to raise capital by issuing new shares. An mNAV below 1 makes the operation difficult. Strategy, with an mNAV around 1, retains little crucial maneuverability (1.16 according to its own dashboard).
A Battle of Confidence Raging On
The publication of these metrics does not erase the ongoing volatility, but it strengthens the group’s strategic stance: hold, accumulate, and never sell in panic. A posture that, in a market dominated by emotion and automatic liquidations, can still heavily influence the overall dynamics of Bitcoin.
