As per Bitcoinist, Bitcoin analyst Willy Woo stated that Strategy (MSTR) is unlikely to be forced to sell its Bitcoin holdings in the next major market downturn. MSTR holds approximately 641,205 Bitcoin, valued at around $64 billion. The company's debt is mostly in convertible senior notes due on Sept. 15, 2027, and Woo calculated that MSTR's stock would need to trade above $183 to avoid selling Bitcoin to meet obligations. This corresponds to a Bitcoin price near $91,502, assuming a multiple net-asset-value (mNAV) of 1. The company can settle conversions with cash, stock, or a mix, giving management flexibility during market volatility. MSTR's share price closed at $246.99, a seven-month low, while Bitcoin traded at $102,004, down 9% over the past week. Some analysts suggest a prolonged and deep decline would be needed to force MSTR to sell Bitcoin. Willy Woo also warned that a partial sale could occur if Bitcoin fails to recover quickly during the expected 2028 bull run. ARK Invest’s Cathie Wood and Coinbase CEO Brian Armstrong have both projected Bitcoin to reach $1,000,000 by 2030. The convertible note structure means MSTR does not face an automatic margin call, but its fate is tied to investor appetite for its stock, which mirrors Bitcoin's movement. MSTR looks broadly protected against a typical bear market, but if Bitcoin and MSTR equity both underperform for an extended period, adjustments may be necessary. Major analysts say liquidation is unlikely in the next downturn, but 2028 is a critical year for whether any sales become necessary.
Willy Woo Analyzes MSTR's Bitcoin Position Amid Market Downturn
BitcoinistShare
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.