According to TechFlow, as Bitcoin prices decline, attention is turning to companies like Strategy, which hold large amounts of Bitcoin. Key concerns include how the firm accumulated its assets and how it manages risk amid increased market volatility. Strategy's estimated static insolvency threshold for 2025 is around $23,000, nearly double the 2023 level. The company shifted its capital-raising strategy in 2024, incorporating convertible bonds, preferred shares, and ATM issuance. Investor put options could trigger a redemption wave in 2028, forcing Strategy to sell up to 71,000 BTC if refinancing fails, potentially causing significant market pressure.
Bitcoin Falls Below $80K, Raising Concerns Over Strategy's Stability
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