MicroStrategy is the world’s largest corporate holder of Bitcoin. The company is currently holding a whopping 152,333 BTC, worth over $4.6 billion at current prices.
One of the most commonly discussed points by crypto traders and investors alike is whether the company has a liquidation threshold and if it will ever have to sell BTC.
- Citing a Tuesday report by broker Bernstein, CoinDesk outlined:
MicroStrategy’s plan to raise long-term debt puts it under pressure to liquidate its bitcoin (BTC) holdings, but only in case of extreme price corrections, especially around its debt expiry, which is due in mid-2025.
- The report also points out that “the corporate structure would come under pressure from ‘spring forward’ clauses – 2028 due debt does have liquidity covenants which could spring forward the debt to 2025/26.
- At the same time, Bernstein argues that if Bitcoin’s price continues increasing, this would make MSTR’s balance sheet strong.
- In turn, if MSTR shares increase as well, this would also put MicroStrategy in a better debt-repayment position.
- The company last bought BTC toward the end of June, when it added 12,333 BTC, making its current holdings 152,333 BTC.