Analysis: Strategy is unlikely to be forced to liquidate Bitcoin due to the decline

Odaily Planet Daily News Strategy's stock price fell more than 11% in early trading on Tuesday, triggering market concerns that it may be forced to liquidate Bitcoin, but analysts The Kobeissi Letter believe that such concerns are exaggerated. Strategy holds about 490,000 bitcoins, with a market value of about $44.4 billion, accounting for 2.3% of the circulating supply. However, Strategy raises funds through convertible bonds (such as zero-coupon bonds), and these debts are closely linked to Bitcoin, but the structural design of the company's debt makes the risk of forced liquidation extremely low. The Kobeissi Letter pointed out that despite the sharp fluctuations in Bitcoin prices, Strategy still has the ability to raise funds through equity issuance to cope with debt pressure. Michael Saylor's 46.8% voting rights also make it almost impossible for a shareholder vote to pass without his consent. Therefore, unless a "black swan" event occurs, Strategy is unlikely to be forced to sell Bitcoin before the debt matures. (Decrypt)