MicroStrategy's Bitcoin (BTC) assets are raising concerns about reaching a critical risk level. Recently, Bitcoin's price has dropped below $75,000, declining to around 10% compared to the company's average purchase price of $66,384. Market experts are warning that continued sharp declines could potentially lead to forced liquidation or asset sales.
MicroStrategy currently holds approximately 528,185 BTC, which is valued at around $40.94 billion (approximately 59.77 trillion won) at current market rates. Even Michael Saylor, once known as the 'ultimate Bitcoin bull', is now facing market uncertainty. Famous cryptocurrency trader Doctor Profit recently issued a direct warning, stating, "You could be the next victim in this market. It would be better to sell as many BTCs as possible right now."
Some reports suggest that MicroStrategy filed an 8-K form with the SEC on April 7th, which included a clause about potentially selling some BTC to repay debt if Bitcoin prices continue to fall, further intensifying investor anxiety. However, some interpret this as a repeated risk disclosure from previous reports, making it difficult to definitively conclude that liquidation is imminent.
Along with Bitcoin's decline, MicroStrategy's stock price (MSTR) is also weak, dropping nearly 15% in the past week, reflecting a significant contraction in investment sentiment. Amid global economic instability and overall cryptocurrency price adjustments, investors are questioning whether MicroStrategy can continue to hold onto Bitcoin.
Currently, MicroStrategy has suspended additional Bitcoin purchases, seemingly intending to adjust its strategy based on market trends. If Bitcoin's price falls below key support levels, Saylor's strategy, built on massive leverage over the years, could be put to the test.
If Bitcoin's price drops further below expected levels, MicroStrategy might need to sell BTC to respond to margin calls from collateral-based loans. Such a scenario could create short-term selling pressure in the market and negatively impact BTC prices.
While Saylor continues to express long-term trust in Bitcoin as an asset, market conditions are challenging his conviction. The industry is closely watching how long this high-risk, high-return strategy can be maintained.
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