MicroStrategy’s stock hit a 25-year high, trading at $235.89, as analysts from BitMEX Research stated the company is "highly unlikely" to sell its bitcoin holdings. MicroStrategy, the largest corporate holder of bitcoin, currently owns 252,220 BTC worth over $17 billion.
Strong Debt Structure Supports Bitcoin Strategy
The company’s solid debt structure and reliable software business revenues minimize the risk of forced bitcoin sales. The bonds in question allow flexibility for bondholders to convert into shares when bitcoin prices are high, reducing pressure to sell. BitMEX analysts say that even if bitcoin prices fall, MicroStrategy’s income should cover bond repayments without needing to liquidate its bitcoin.Potential Risks in the Future
While the likelihood of bitcoin sales is low, risks could increase if MicroStrategy’s stock value dips below its bitcoin holdings. With debt repayments spread out over years, immediate sales are not expected. However, some analysts caution that if bitcoin prices fall and stock value drops, the situation could change.
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