The recent Bitcoin price oscillations have always been a hot topic, and this time, all eyes are on Microstrategy and its co-founder, Michael Saylor. Bitcoin sliding below $ 75,000, concerns increase that microstrategy could be forced to sell its Bitcoin Holdings masses to avoid liquidation.
The Doctor Profit of Crypto Trader Profit sent a bold message to Saylor, suggesting that he could be the next big victim of the market.
Upcoming microstrategy liquidation crisis?
Microstrategy is one of Bitcoin’s largest institutional holders, having accumulated more than 528,185 BTCs at a value of $ 40.94 billion so far.
According to Doctor Profit, Bitcoin now has only 10% above the average microstrategy purchase price of $ 66,384. If the market continues to drop, the company may need to sell BTC to avoid the risk of liquidation.
This has created fear among investors, who fear that a potential Bitcoin by Microstrategy sale can further lower BTC prices. For the moment, Microstrategy has interrupted other Bitcoin purchases, while waiting to see where the market is going.
Stock MSTR saw a drop of 15%
In addition to the drop in Bitcoin, the microstrategy stock (MSTR) underwent a significant slowdown, losing more than 15% of value in last week. This sharp decline was fueled by wider market disorders, including the current economic uncertainty and the recent correction of cryptographic prices.
Dry deposit rumors add a sale threat
Adding to the market fears, rumors suggest that Microstrategy may have submitted an 8-k form to Securities and Exchange Commission of the United States (SEC) on April 7. This document would have warned that if the price of Bitcoin continues to decrease, the company could have to sell its assets to reimburse the debts.
However, a more in -depth examination of the deposit reveals that Microstrategy has included similar warnings in its previous reports. This suggests that the declaration is a disclosure of risk of routine rather than a threat of immediate liquidation.
Is microstrategy really in danger?
Although the warning seems alarming, it is important to consider the financial situation of Microstrategy. The company used billions of debts to buy Bitcoin, making its investment strategy a high -risk and high reward game.
So far, Saylor has maintained Bitcoin confidence, declaring several times that he did not intend to sell. However, if Bitcoin falls below a critical threshold, it could trigger margin calls on loans to support Bitcoin Holdings from microstrategy.
In such a case, the company could have to sell some of its assets, either Bitcoin or otherwise, to stay afloat.
