In the latest chapter of financial theatrics, Strategy stock took an 11% dive on the 25th of February, coinciding with Bitcoin‘s unceremonious slide below the $90,000 mark. 📉 The market, ever the drama queen, is now whispering about potential liquidation, given the company’s rather… enthusiastic Bitcoin hoard. 🎩🔥
Strategy, in its infinite wisdom, boasts a collection of 499,096 Bitcoin (BTC), currently valued at a modest $44 billion. As the proud owner of such a cache, the company’s fiscal health is as closely tied to Bitcoin’s whims as a sailor to the sea. 🚣♂️🌊
The market’s current tizzy over a possible forced liquidation is rather reminiscent of a child’s fear of the dark—largely unfounded but persistent nonetheless. In a missive penned on the 25th, The Kobeissi Letter soothingly pointed out that these fears are as exaggerated as a politician’s promises. 🐑🖊️
Strategy, it seems, has a penchant for walking a tightrope, with $8.2 billion in debt teetering against its ~$44 billion Bitcoin stack, a leverage ratio that would make a circus performer blush. Yet, most of this debt is structured as convertible notes, which, like a magician’s trick, converts at values below the current stock price, thus preventing an immediate default. 🎩✨
The MicroStrategy liquidation:
As MicroStrategy, $MSTR, falls over -55%, many are asking about “forced liquidation.”
The company now holds $44 BILLION worth of Bitcoin, could they be forced to sell it?
Is liquidation even possible? Let us explain.
(a thread)
— The Kobeissi Letter (@KobeissiLetter) February 25, 2025
Should Bitcoin continue its descent into the abyss, Strategy may find itself in the unenviable position of trying to raise capital with a proverbial millstone around its neck. Investor confidence, like a soufflé, could collapse if Bitcoin’s value falls below Strategy’s average purchase price of $66,350. 🥧💥
In the grand scheme of things, a forced liquidation would require a corporate event of biblical proportions, such as bankruptcy or a stockholder mutiny, both of which seem about as likely as a snowball’s chance in hell. 🔥❄️
Michael Saylor, the architect of Strategy’s Bitcoin odyssey, has brushed off liquidation fears with the nonchalance of a man sipping tea during an earthquake. In 2025, the company has added a further 50,000 Bitcoin to its coffers, now controlling a tidy 2% of the world’s cryptocurrency supply. 🏦🔒
As of the 26th, Bitcoin is teetering at around $88,500, having briefly dipped its toes below the $90,000 threshold. The cryptocurrency has lost over 5% of its value in the past 24 hours and is nearly 20% down from its all-time high of $109,000. Such is the volatility of the digital gold rush. 📉💎
Read More
- CRK Boss Rush guide – Best cookies for each stage of the event
- Fortress Saga tier list – Ranking every hero
- Glenn Greenwald Sex Tape Leak: Journalist Cites “Maliciously Political” Motives
- Mini Heroes Magic Throne tier list
- Cookie Run Kingdom Town Square Vault password
- Grimguard Tactics tier list – Ranking the main classes
- Castle Duels tier list – Best Legendary and Epic cards
- How to Prepare and Dominate the Awakened Hollyberry Cookie Update
- Overwatch Stadium Tier List: All Heroes Ranked
- Hero Tale best builds – One for melee, one for ranged characters
2025-02-26 10:04