Strategy founder Michael Saylor plans to convert $6 billion in bond debt to equity, reducing debt on the balance sheet. Despite a potential 88% drop in BTC price, the firm claims it can fully cover its debt with its $49 billion in Bitcoin reserves. Converting convertible debt to equity can ease debt pressure but may dilute existing shareholders.

Strategy is currently down 10% on its average BTC purchase price of $76,000, with the asset trading at $68,400. Michael Saylor signals another Bitcoin buy, marking 12 consecutive weeks of buying despite the asset’s decline. The company continues to accumulate Bitcoin despite the sharp drop in its stock price.

Strategy stock (MSTR) climbed 8.8% to $133.88, with Bitcoin briefly surpassing $70,000 on Friday before falling to $68,400. MSTR shares are down 70% from their mid-July all-time high of $456 as BTC prices have dropped by 50% since early October. Coinbase misses Q4 earnings as Ethereum eyes a ‘V-shaped recovery.’

Read more at Cointelegraph: Strategy Plans To Equitize Convertible Debt Over Time