The decline in Strategy's stock price has raised concerns about liquidation, and analysts say the possibility of forced selling is low

Foresight News reported that according to an analysis by The Kobeissi Letter, although Strategy's stock price fell more than 11% in early Tuesday trading, the market is concerned about the possibility of forced liquidation of Bitcoin. However, due to structural safeguards, the likelihood of this situation occurring is low. Strategy primarily raises funds through convertible bonds, such as a $2 billion zero coupon bond due in 2030 with an initial conversion price of $433.43 per share, enabling it to acquire capital without immediately diluting shareholder equity. As of now, Strategy holds approximately 499096 BTC worth around $44.4 billion, while its $8.2 billion debt is highly dependent on Bitcoin's performance. This week's significant pullback in the cryptocurrency market resulted in a $3.7 billion loss in the market value of Strategy's Bitcoin holdings. Although there is currently no immediate risk, Polymath co-founder Trevor Koverko pointed out that if the market remains sluggish for a long time, Strategy's collateral requirements and refinancing capabilities will be tested. In addition, Michael Saylor, co-founder and chairman of Strategy, holds 46.8% of the voting rights. Analysts believe that without his consent, shareholder resolutions are almost impossible to pass, thereby reducing the possibility of forced selling due to bankruptcy or shareholder resolutions. Kobeissi Letter also pointed out that even if BTC prices fall by 50% to $33000, Strategy assets are still over 100% higher than debt, meaning that unless a "black swan" event occurs, it is unlikely to undergo forced liquidation before debt maturity (as early as 2028).