Strategy Unlikely to Liquidate Bitcoin in Market Downturn

Woo said that as long as Strategy’s stock stays above $183.19 by 2027—which is roughly equivalent to Bitcoin trading around $91,500—the firm can cover its debt without ￰0￱ analysts also said that it would take an unusually severe bear market to trigger a ￰1￱ Strategy’s strong Bitcoin position, both its stock and Bitcoin prices have dipped ￰2￱ Doubt Strategy Will Sell Bitcoin Bitcoin analyst Willy Woo believes that Michael Saylor’s company, Strategy (MSTR), is unlikely to face a forced Bitcoin liquidation even if the market enters another major ￰3￱ a post that was shared on X , Woo dismissed speculation that Strategy might have to sell part of its Bitcoin holdings to service its debt, saying, “MSTR liquidation in the next bear market?

I doubt it.” Strategy’s debt is primarily made up of convertible senior notes, which the company can choose to settle with cash, common stock, or a mix of both when they ￰4￱ of the key dates for repayment comes on Sept. 15, 2027, when approximately $1.01 billion in debt will be ￰5￱ explained that to avoid selling any Bitcoin to cover that amount, Strategy’s stock price must stay above $183.19 by that time, a level that aligns with Bitcoin trading around $91,500—assuming a multiple net-asset-value ratio of ￰6￱ analysts seem to share Woo’s ￰7￱ commentator The Bitcoin Therapist argued that Bitcoin will have to perform exceptionally poorly for Strategy to be forced into liquidation, and explained that it would take “one hell of a sustained bear market” to trigger such a scenario.

Currently, Strategy holds around 641,205 Bitcoin, which is valued at roughly $64 billion according to Saylor Tracker ￰8￱ this strong position, the company’s stock has not been immune to the recent market ￰9￱ of Strategy closed Tuesday at $246.99, which was a seven-month low after dropping nearly 7% in a single ￰10￱ itself is also under pressure , and slid to around $101,377 after losing nearly 10% over the past week. BTC’s price action over the past week () While Woo does not foresee major risks in the near term, he did warn that a “partial liquidation” could occur if Bitcoin fails to appreciate much during the expected 2028 bull market. Still, with long-term forecasts from people like ARK Invest’s Cathie Wood and Coinbase CEO Brian Armstrong predicting Bitcoin could reach $1 million by 2030, the outlook for Strategy is still heavily tilted toward optimism rather than concern.