BitMEX assessed the likelihood of liquidation of MicroStrategy’s Bitcoin reserves

It is “highly unlikely” that market conditions will force <a href="https://www.world-today-news.com/full-of-uncertainty-bitcoin-even-predicted-soon-us-20-thousand-blockchain-media-indonesia/" title="Full of Uncertainty, Bitcoin Even Predicted Soon US $ 20 Thousand – Blockchain Media Indonesia”>MicroStrategy to sell its holdings of the first digital currency. BitMEX research experts came to this conclusion.

MicroStrategy Bonds – When Will They Liquidate?

Let’s take a look at MSTR’s top links & take a look at their structure. We evaluate the potential that could have forced MSTR to sell Bitcoin. We argue that emergency liquidations are unlikely, based on the current debt structurehttps://t.co/mQK4ODuUlM

– BitMEX Research (@BitMEXResearch) October 24, 2024

Analysts drew attention to the company’s values ​​reaching a new historical level. Significant growth (after a period of stagnation since the early 2000s) coincided with MicroStrategy’s shift to strategy. buy bitcoin on balance in August 2020.

Data: MarketWatch.

Since then, the company has accumulated the largest physical resources in the first digital currency in the amount of 252,220 BTC. The company spent ~$9.9 billion on acquiring digital gold, with a current asset valuation of over $17 billion.

From a certain point, MicroStrategy turned to the active use of debt capital through the placement of convertible bonds to raise funds for the purchase of Bitcoin.

Data: BitMEX Research.

BitMEX experts rejected investors’ fears about how the company could be liquidating crypto assets to pay obligations. With a current capitalization of more than $43 billion, MicroStrategy does not need these measures, analysts believe. The amount outstanding on the bonds is approximately $4.25 billion.

However, they took into account the trust history of Bitcoin from Grayscale. The structure was trading at a premium to the price of the underlying asset, but after that transformation in January 2024 ETF cash flow experience. according to Value of Sosothe process does not stop.

Data: SoSoValue.

If the price in MicroStrategy values ​​turns to discount at some point, the liquidation of the company’s Bitcoin reserves will be beneficial for shareholders. But analysts believe that such a development of events is “very unlikely” – for this, the price of the cryptocurrency must fall to $ 15,000.

Microsoft Board is recommended shareholders to support the group’s “valuation of potential investments” in digital gold. MicroStrategy founder Michael Saylor contacted software company CEO Satya Nadella with advice on how to “earn another trillion dollars for shareholders.”

Hi @SatyaNadellaif you want to make the next trillion dollars for $MSFT shareholders, call me. pic.twitter.com/NPnVvL7Wmj

— Michael Saylor⚡️ (@saylor) October 25, 2024

Remember that Sailor announced his intention to turn MicroStrategy into a Bitcoin bank with a capitalization of $1 trillion.

some connected these plans with support for the storage of cryptocurrencies in large financial institutions. A businessman rejected community concerns amid criticism.

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