Following the sharp drop in Bitcoin prices, Strategy (MSTR) made important announcements regarding its current financial situation. The company announced that as of February 1st, it has cash reserves of $2.25 billion.
The statement indicated that the current level of dollar reserves is planned to be maintained for the next 2 to 3 years in order to finance dividend payments.
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Andrew Kang, a Strategy executive, stated that despite the drop in Bitcoin prices, the company’s strategy was being maintained in a “disciplined” manner. CEO Phong added that even though the Bitcoin price fell below the company’s average purchase cost of $76,000, no covenant breaches were triggered.
However, Phong also pointed out the worst-case scenario. He stated that if the Bitcoin price falls to the $8,000 level, the company may experience difficulties in servicing its debt. But at current price levels, the company has no problem meeting its obligations.
*This is not investment advice.
Continue Reading: BREAKING: Strategy CEO Reveals the Level at Which They Would Be Unable to Pay Their Debts if Bitcoin Drops Further


