BitMine: The new Strategy framework extends reserve coverage period to over 26 months, helping to stabilize investor confidence
Foresight News reports that, in response to Strategy's previously announced "Digital Credit Capital Framework," Ethereum treasury company BitMine (NYSE: BMNR) commented that the framework consolidates the structural relationship between the capital markets and Bitcoin, and should boost investor confidence in the Strategy approach. BitMine believes that investors’ concerns typically arise only during Bitcoin downturns; if the Bitcoin price were at $100,000, very few would question this strategy. Therefore, Strategy needs to demonstrate that it has enough capital to withstand downturn cycles. Raising the capital buffer to more than 26 months is a wise move. According to their estimates, based on rolling 36-month cycles since 2009, the probability of negative Bitcoin returns is less than 0.8%. A 26-month reserve scale is sufficient for Strategy to weather such volatility safely.
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