Well known Bitcoin analyst Willy Woo is of the opinion that Michael Saylor’s MicroStrategy (MSTR) will be able to withstand any Bitcoin liquidation during the upcoming bear market.
In rather confidently shared his opinion bringing about Bitcoin reassurance amid crypto volatility.
“MSTR liquidation in the next bear market? I doubt it,” Woo asserted.
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Michael Saylor’s Bitcoin journey
MicroStrategy’s aggressive Bitcoin accumulation has positioned it as a corporate bellwether in the crypto space.
MicroStrategy is led by vocal Bitcoin advocate Michael Saylor and he has amassed a staggering 641,205 BTC, valued at approximately $64 billion based on prices as of this article.
Strategy’s Bitcoin strategy has turned heads of those in the industry and out alike although concerns over debt obligations have sparked debates about potential Bitcoin liquidation risks.
Woo, however, paints a picture of resilience, stating it would require “one hell of a sustained bear market” to push the firm toward selling its holdings.
Strategy resilient against Bitcoin Liquidation
At the heart of MicroStrategy’s debt structure are convertible senior notes, with about $1.01 billion maturing on September 15, 2027. The company retains flexibility in settlements, opting for cash, common stock, or a mix.
To sidestep any need for Bitcoin liquidation to repay this tranche, MicroStrategy’s stock needs to trade above $183.19, Woo explained.
This threshold aligns with a Bitcoin price around $91,502, assuming a 1x multiple net-asset-value (mNAV).
Echoing Woo’s confidence, analyst The Bitcoin Therapist noted that Bitcoin would need to “perform horribly” in a downturn to trigger Bitcoin liquidation for MicroStrategy.
“Would be one hell of a sustained bear market to see any liquidation for Strategy,” they added, highlighting the buffer built into the company’s model.
In summary, Willy Woo’s prognosis is clear: MicroStrategy stands firm, unlikely to encounter Bitcoin liquidation in the next bear market.
