Key Notes
- Willy Woo said that unless Bitcoin fails to rally strongly during the 2028 bull market, Strategy doesn’t face any major liquidation risk.
- Bitcoin analyst The Bitcoin Therapist said that it would take an “extremely sustained bear market” for Strategy to be forced into liquidation.
- MSTR shares fell 7% to $246, with analyst Ali Martinez warning that the stock price could decline further to $100.
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
$101 704
24h volatility:
1.9%
Market cap:
$2.03 T
Vol. 24h:
$113.26 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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Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.
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Source: https://www.coinspeaker.com/strategy-wont-face-bitcoin-liquidation-mstr-stock-crashes-7/
