Microstrategy (now a strategy), intelligence company, is facing operating challenges at the present time. From the November 475 summit, it has its shares More than 55 % decreased.
This raised doubts about their creative action -focused action plan. Looking at the current volatility BitcoinWhich decreased to up to 86,000 dollars after losing 9 %, market observers ask about the sustainability of the strategy approach.
Strategy: terrible market conditions
The business model for the approach is mainly dependent on an ambitious plan that turned the company from an ordinary software institution into the Bitcoin power. Currently, the company bought 499,096 BTC to the total $ 43.7 billion. Fresh Debt version Earlier this month of $ 2 billion, raising the average cost per bitcoin to $ 66,350.
The acquisition strategy includes these borrowing with 0 % transfer, bitcoin to raise prices up, sell new shares, and use revenues to gain more bitcoin. The course was profitable so far; However, the current market conditions are a threat to its sustainability.
Microstrategy:
As Microstrategy, $ MSTERIt exceeds -55 %, and many ask about “forced liquidation”.
The company now owns Bitcoin worth $ 44 billion, can it be forced to sell it?
Is the liquidation possible? Let's explain.
(topic) pic.twitter.com/gcdzvu2gva
Kobeissileter's message February 25, 2025
Fears of liquidation are waving, but they remain unanimous
According to the Kobeissi Letter research, the strategy will be vulnerable to liquidation pressure if bitcoin decreases to less than $ 66,000 and remain there. This decisive level represents the average cost of acquisition of the company. However, many elements indicate that the liquidation is unlikely even with the current market fluctuation.
The strategy has $ 8.2 billion of debt for $ 43.4 billion in bitcoin, providing a large pillow. More importantly, most of the company's convertible notes are not ripened until 2027, giving the strategy a precious time to dissolve in the short term. Since the start of the Bitcoin strategy in August 2020, the company has endured many important prices for selling its property.
BTCUSD trading at $88,949 on the daily chart: TradingView.com
Market conditions differ from previous declines
The Bitcoin Market today has more institutional support than it was during the past “Winter of encryption.” The current ecosystem contains better basics, and major companies have begun to use bitcoin reserves.
Rezolve AI recently announced an investment plan One billion dollars in Bitcoin It has already committed $ 100 million. The two countries have started using similar ways, making more people want to buy encrypted currencies. These changes in the market structure indicate that bitcoin may be more flexible than it was during the past decline, which may support the long -term strategy thesis.
Meanwhile, despite the predicament of the co -founder of Bitmex, Arthur Hayes, where more declines decrease, the expectations for the most popular encryption in the world are still solid, as their highest levels have reached all times.
The history of the strategy of adhering to the courses and organizing debts with the remote merit protects it from immediate liquidation pressure. However, the decrease in the share price limits flexibility, while maintaining its controversial model under pressure.
Distinctive image from Gemini Imagen, the tradingvief chart
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