Several months ago, I started wondering how many debts MSTR(MicroStrategy) holds, compared to total assets 🤔 Because, if they have a high debt-to-total asset ratio, they might suffer a death ☠️ spiral 🌀 next bear 🐻 market. --- ![1000030318.jpg](https://cdn.steemitimages.com/DQmfGb2BdqChxKC9gQSxajgbT4dfYg9n8a4xviXmu3NK5EU/1000030318.jpg) Source: [MSTR Tracker](https://mstr-tracker.com/) So, I checked how many BTC(Bitcoin) they are holding. They are holding 479k BTC. It's around $46b. And in this table, they have $7.26b convertible bonds. I wondered whether it is the total debts of MSTR 🧐 ![1000030325.jpg](https://cdn.steemitimages.com/DQmWCyPeervyYWHwvubV4qNcn4zhKvvfJXzyeWUstAfNTa2/1000030325.jpg) Source: Investing.com So, I checked the balance sheet of them. Dec 31, 2024, their total liabilities were $7.6b. It's similar to the current convertible bond size. Therefore, we realized their most debt type is the convertible bond. --- Alright, let's calculate the debt-to-total asset ratio. Their current BTC holdings value is $46.9b. You can check the data in Figure 1 again. And their current convertible bond size is $7.26b. Debt-to-Total Assset-Ratio = $7.26b ÷ $46.9b × 100% = 15.48% It seems that their financial structure is rather healthy than I thought 😮 As far as I know, average debt-to-total asset ratio of global corporations is about 30%. ![1000030321.jpg](https://cdn.steemitimages.com/DQmRASLAJXgjWEXF39kct9gDNwbnEtHS67kGHa9G3YPQdGz/1000030321.jpg) Source: Investing.com MSTR price surged 2,365% for the past 5 years Amazing ![1000030316.jpg](https://cdn.steemitimages.com/DQmbPP81JzphHzKf2BZF3Riono4QdGSUS7Nnm3GHa2QvKoT/1000030316.jpg) Source: [MSTR Tracker](https://mstr-tracker.com/) BTC per share has been decreasing. Since I realized their debt-to-total asset ratio is low, I don't think MSTR is overrated.