CMC News

#Strategy Announces Credit Dashboard After $BTC Decline

Strategy rolled out a new credit rating dashboard based on the company's preferred stock notional value on Tuesday. The world's largest corporate $BTC holder claims to have at least another 70 years of dividend payment runway to service its debt, even if $BTC's price remains flat.

If $BTC drops to the $74,000 average cost basis, the company still has 5.9x assets to convertible debt, which it refers to as the BTC Rating of its debt. At $25,000 $BTC, it would be 2.0x, Strategy said in a Tuesday X post.

The move comes as investors grow increasingly worried that falling crypto prices could force large digital asset treasury companies into liquidation, adding more selling pressure to an already weakened market. Strategy's dividend runway and enterprise software cash flow are significantly reducing #liquidation risks for the company, according to

Lacie Zhang, research analyst at Bitget Wallet.

Zhang views Strategy's 71-year dividend runway claim as realistic under a flat $BTC price scenario. However, long-term projections are dependent on several uncertainties, including market volatility or regulatory shifts. Zhang is not particularly concerned about near-term liquidations for the largest corporate $BTC holder, as their diversified funding and holding strategy positions them well for sustained growth.