How does MicroStrategy use Bitcoin reserves to survive the bear market?

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【Crypto World】Recently, there is an interesting phenomenon worth noting—professional rating agency maintained MicroStrategy Inc.'s B- rating with a stable outlook.

Why is it stable? The key lies in the company's solid financial operations. MicroStrategy has set aside reserves for dividends and interest payments over the next 12 to 24 months, which is an important support for its credit rating.

Speaking of which, Bitcoin's price plunge did indeed hurt MSTR. The company's market value once shrank by 40%, which is a test for any enterprise. But the company didn't choose to panic—instead, it raised $700 million through stock issuance in November, replenishing nearly $1.5 billion in reserves.

Most interestingly, analysts pointed out that MSTR currently doesn't need to sell Bitcoin for emergency funds. The cash on hand is enough to cover 21 months of dividends, and the company's financing channels in the capital market remain smooth. In other words, even if the market fluctuates again, the company can stick to its holding strategy without being forced to sell.

From this perspective, Bitcoin reserves are never a risk; rather, they are part of a long-term strategy.

BTC-0.68%
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