The strategy stock fell 11% on February 25 as bitcoin slipped below $ 90,000, causing the company’s large -scale bitcoin exposure to increase concerns about potential liquidation.
The price of about $ 44 billion with 499,096 bitcoins (BTC), the strategy is the largest corporate bitcoin holder, which closely connects its financial stability to the value movements of the property.
The sharp decline has speculated a possible forced liquidation. However, in the February 25X post, Capital Market Analysts the Coby letter stated that these concerns have been exaggerated.
The strategy currently takes a loan of $ 8.2 billion in bitcoin as against ~ $ 44 billion, which maintains a leverage ratio of about 19%. To reduce the risk of immediate default, most part of this loan is structured as convertable notes with conversion values below the current stock price.
The market nervousness related to liquidation is not new. Similar concerns came out from $ 70,000 to $ 15,000 during 2022 of bitcoin, yet the strategy continued to buy bitcoin. The company’s commercial plan is focused on raising capital, purchasing bitcoins and behaving as its holdings instead of liabilities.
However, prolonged bitcoin decline will make more difficult for the strategy of raising money. If the average purchase price of bitcoin strategy falls rapidly below $ 66,350, the investor trust may be reduced.
Given the financial structure of the company, a forced liquidation will require a fundamental corporate program such as bankruptcy or stockholder decision, both are unlikely.
Michael Sirer, the founder of the Stategi, has reduced the apprehensions about liquidation and emphasized the company’s long -term bitcoin plan. In 2025, the strategy has already purchased more than 50,000 bitcoins and currently constructs about 2% of the Cryptocurrency supply.
As of 26 February, Bitcoin is trading around $ 88,500, after a brief dip of below $ 90,000. Cryptocurrency has declined by more than 5% in the last 24 hours and is about 20% below its all -time high of $ 109,000.
