As per AMBCrypto, MicroStrategy's Bitcoin holdings face a potential 'death spiral' as the company's stock declines sharply. The stock has dropped nearly 10% in a single session to $159.77, a 66% fall from its July high. This underperformance relative to Bitcoin signals growing corporate and structural risks. CEO Phong Le has outlined conditions under which the company would sell its Bitcoin holdings, including when the stock trades below its modified net asset value (mNAV). The mNAV currently hovers near 0.95x, close to the 0.9x danger zone. If the mNAV continues to decline and capital markets remain closed, a Bitcoin sale becomes mathematically probable. With over 650,000 BTC in holdings, any forced sale could trigger a major supply shock and cascading market effects.
MicroStrategy's 650,000 BTC Holdings Face 'Death Spiral' Risk as Stock Plummets
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