TechFlow reported on February 26 that despite Strategy's (formerly MicroStrategy) shares plunging over 11% on Tuesday morning, sparking market concerns about the "Bitcoin treasury" firm potentially being forced to liquidate its Bitcoin holdings, analysis from The Kobeissi Letter suggests such a scenario is "almost impossible."
Strategy currently holds approximately 499,096 bitcoins, worth around $44.4 billion, representing 2.3% of Bitcoin's circulating supply. These holdings are backed by $8.2 billion in convertible debt, including zero-coupon and low-interest notes maturing in 2028 and 2030. Although this week's broader crypto market downturn erased $3.7 billion from Strategy's Bitcoin holdings, the company's structural safeguards remain intact.
Analysts highlight that the structure of Strategy's convertible notes, the company's prior ability to raise $1.8 billion in equity during previous Bitcoin downturns, and co-founder and chairman Michael Saylor's control of 46.8% of voting power collectively form strong defenses against forced liquidation. Even if Bitcoin's price were to drop by 50% to $33,000, Strategy's assets would still exceed its liabilities by more than 100%.
