📌 TOPINDIATOURS Update crypto: Strategy Plans to Equitize Convertible Debt Over 3–

The world’s largest corporate Bitcoin holder, Strategy, is playing the long game with its balance sheet in a bid to keep investors bullish after Bitcoin’s recent downturn.

Founder Michael Saylor revealed Sunday that the firm plans to “equitize” its massive $6 billion convertible debt load over the next three to six years, a move designed to wipe liability off the books by turning bondholders into shareholders.

Strategy and the Mathematics of Debt Survival

This isn’t just accounting wizardry; it is a survival mechanism for the aggressive treasury strategy initiated in 2020.

With Bitcoin currently trading around $68,750 against an average purchase price of $76,000, the firm is currently underwater on its investment.

However, Saylor insists the company is robust. According to recent posts and interviews, he maintains that Strategy can survive an 88% crash in BTC prices down to $8,000 and still cover its debts.

This resiliency claim is crucial because, as some analysts note, Bitcoin is acting like a growth stock, bringing high volatility that demands a steel-stomach balance sheet.

Dilution vs. Default: Strategy’s Double-Edged Sword

Equitizing convertible debt means Strategy avoids repaying the principal in cash.

Instead, bondholders get stock. While this preserves cash flow, it implies diluting current investors by expanding the share count.

Currently, 100% of Strategy’s convertible debt is “out-of-the-money,” meaning the stock price hasn’t hit the conversion trigger. This forces a choice: pay cash, refinance, or wait for the stock to pump.

Saylor remains unfazed. On X (formerly Twitter), the firm posted: “Strategy can withstand a drawdown in BTC price to $8,000 and still have sufficient assets to fully cover our debt.”

While recent market movements have been shaky, with Bitcoin ETF outflows of $410 million dragging prices down to the $66k range, Strategy continues to buy.

Analysts highlighted on MEXC that the $8,000 figure is a theoretical “stress floor.” If BTC drops that low, the company’s Bitcoin stash would roughly equal its debt load.

Meanwhile, institutional interest continues to grow. Just as the world’s largest asset manager, BlackRock, increases stakes in crypto miners, Strategy is also playing the long game with crypto.

Saylor is hoping that a few years is enough time for the asset class to mature effectively, allowing Strategy to bail out the convertible notes naturally through price appreciation.

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Can They Hold the Line?

Saylor signaled yet another purchase recently, marking 12 consecutive weeks of accumulation.

This conviction is testing the nerves of traders who know that if Bitcoin drops below $8,000, insolvency becomes a mathematical probability, according to Strategy CEO Phong Le in a recent earnings call.

If you are watching the macro picture, cooling inflation is testing investor conviction across the board. Strategy is betting the house that time is on their side.

If they are right, the equity dilution will be a small price to pay for solvency. If they are wrong, the liquidation cascade could be historic.

The post Strategy Plans to Equitize Convertible Debt Over 3–6 Years: What It Means for BTC appeared first on Cryptonews.

🔗 Sumber: cryptonews.com

📌 TOPINDIATOURS Eksklusif crypto: XRP Price Outruns Bitcoin and Ether as Post-Cras

XRP price is sprinting. Since the February 6 low, the token has ripped about 38% to $1.55. Meanwhile, Bitcoin and Ether are crawling with gains closer to 15%.

That kind of gap does not happen by accident.

After the recent liquidation wave shook the market, traders seem to be piling into XRP as the higher beta play. When momentum comes back, capital usually chases the coins that move the fastest. Right now, that coin is XRP.

Is Smart Money Rotating? What Is Next For XRP Price

Bitcoin is sitting near $68,920. Ether is around $1,982. Solid recoveries, sure. But XRP has gone almost vertical, jumping more than 5% in the last 24 hours alone and racing to $1.55.

That kind of outperformance usually means money is rotating. With Bitcoin ETFs seeing outflows recently, traders are hunting for better upside elsewhere.

Bitcoin still looks hesitant, trying to confirm a real reversal. XRP, right now, has clear drivers behind it. Optimism around Ripple’s regulatory positioning. Growing ETF chatter. Strong narrative.

Supply Shock Signals to Watch

There is an interesting supply squeeze building. Data shows Binance XRP reserves dropped by about 192.37 million tokens between Feb. 7 and 9. That is roughly a 7% cut, bringing total holdings down to 2.553 billion. Levels we have not seen since early 2024.

When exchange balances fall that quickly, it usually means bigger players are pulling coins into cold storage. And we have seen this movie before. A similar wave of withdrawals came right before XRP ran from $0.60 to $2.40 in late 2024.

In the short term, traders are focused on the $1.91 resistance. If that level breaks cleanly, it opens a path toward prior cycle highs.

This week is a real stress test. Fed minutes are coming. Core PCE data too. Both can shake the entire market in seconds.

If macro sparks volatility, XRP will feel it. But the level that matters is $1.45. If price defends that zone while everything else is choppy, that is strength. And strength during chaos is what fuels the next leg higher.

A sustained hold above that area keeps the $2.40 target in play. Especially with options markets already pricing in a meaningful chance of that breakout this year.

The post XRP Price Outruns Bitcoin and Ether as Post-Crash Rotation Favors Ripple Token appeared first on Cryptonews.

🔗 Sumber: cryptonews.com