Strategy Won’t Face Bitcoin Liquidation, Says Expert, as MSTR Stock Crashes 7%

4 hours ago by · 2 mins read

Analyst Willy Woo stated that Strategy is unlikely to sell its Bitcoin holdings to repay its $1.01 billion debt as MSTR stock faces strong selling pressure.

With MSTR stock on a continuous decline, experts have raised doubts over the company’s ability to repay its debt. Some reports suggest that Michael Saylor’s Strategy (MSTR) could sell its BTC BTC $103 153 24h volatility: 1.3% Market cap: $2.06 T Vol. 24h: $110.93 B to cover the debt during the next crypto market downturn. However, market expert Willy Woo believes that such a scenario won’t arise. 

Strategy Is Insulated from Liquidation, Says Willy Woo

According to analyst Willy Woo, Strategy faces approximately $1.01 billion in debt maturing on Sept. 15, 2027. To avoid selling its Bitcoin holdings for repayment, MSTR stock must trade above $183.19. This level roughly corresponds with a Bitcoin price of around $91,502, assuming a multiple net asset value (mNAV) of 1.

Woo said that while a liquidation is unlikely in the next bear market, it could occur if Bitcoin fails to deliver a strong rally during the expected 2028 bull cycle. “Ironically, there’s a chance of a partial liquidation if BTC doesn’t climb in value fast enough in an assumed 2028 bull market,” Willy Woo said.

Bitcoin analyst The Bitcoin Therapist also shared a similar view. He stated that Bitcoin would need to “perform horribly” in the next market downturn for Strategy to be forced into selling its Bitcoin holdings.

He added that it would take “one hell of a sustained bear market” for any liquidation to occur. Currently, Michael Saylor’s Strategy holds about 641,205 BTC, valued at roughly $64 billion, following its latest purchase earlier this week.

In the latest development, Strategy announced a proposed initial public offering of 3.5 million shares of its 10.00% Series A Perpetual Stream Preferred Stock. STRE shares carry a face value of €100 each and offer cumulative dividends at an annual rate of 10%.

MSTR Stock Price Crash 7%

Amid all the developments, MSTR stock price has corrected another 7% on Nov. 4, ending the trading at $246 levels. Despite strong Q3 results, with MSTR eyeing an entry to the S&P 500, the bulls have so far failed to lead a sustained upside. 

Crypto analyst Ali Martinez noted that MSTR stock continues to mirror its previous price fractal. According to him, if the pattern holds, the next potential move could see the stock drop to around $100. 

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