Michael Saylor’s company, MicroStrategy (MSTR), is unlikely to have to sell off any of its Bitcoin holdings to cover its debt in the next major crypto market downturn, according to prominent Bitcoin analyst Willy Woo.
In a recent post on X, Willy Woo stated, “MSTR liquidation in the next bear market? I doubt it.” The company’s debt primarily consists of convertible senior notes, which MicroStrategy plans to settle either through cash payments, common stock, or a combination of both at its discretion.
### MicroStrategy’s Debt and Bitcoin Holdings
MicroStrategy faces a significant debt repayment due on September 15, 2027, amounting to approximately $1.01 billion. According to Woo, for the company to avoid selling its Bitcoin holdings to cover this debt, its stock price must remain above $183.19. This figure corresponds roughly to a Bitcoin price near $91,502, assuming a net-asset-value multiple (mNAV) of 1.
Bitcoin analyst known as The Bitcoin Therapist echoed this sentiment, noting that “Bitcoin would have to perform horribly” in the next downturn for MicroStrategy to consider liquidating its Bitcoin stash. They added, “Would be one hell of a sustained bear market to see any liquidation for Strategy.”
Currently, MicroStrategy holds around 641,205 Bitcoins, valued at approximately $64 billion at the time of publication, according to data from Saylor Tracker.
### Market Performance Overview
As of the most recent trading day, MicroStrategy’s stock closed at $246.99, marking a seven-month low and down nearly 6.7% on the day. Meanwhile, Bitcoin is trading at around $101,377, reflecting a nearly 10% decline over the past week, according to CoinMarketCap.
### Potential for Partial Liquidation in the Future
While Woo remains confident that a liquidation event is unlikely during the next bear market, he cautioned there is some risk of partial Bitcoin sales if Bitcoin does not rally strongly during the anticipated 2028 bull market.
“Ironically, there’s a chance of a partial liquidation if BTC doesn’t climb in value fast enough in an assumed 2028 bull market,” Woo explained.
### Expert Predictions on Bitcoin’s Long-Term Outlook
Several crypto industry leaders have offered bullish long-term forecasts for Bitcoin. ARK Invest CEO Cathie Wood and Coinbase CEO Brian Armstrong, for example, have predicted that Bitcoin could reach $1 million by 2030, underscoring widespread optimism about the cryptocurrency’s future potential.
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*Related: Bitcoin shows signs of exhaustion as analysts express skepticism over a $125K target by 2025.*
https://cointelegraph.com/news/microstrategy-michael-saylor-mstr-stock-bitcoin-price-liquidation-bear-market