MicroStrategy Will Need To Sell Its Bitcoins Holdings If This Happens
The post MicroStrategy Will Need To Sell Its Bitcoins Holdings If This Happens appeared first on Coinpedia Fintech News
According to a report by brokerage firm Bernstein, MicroStrategy will only need to liquidate its bitcoin holdings in the case of intense price corrections, especially around its debt expiry due in mid-2025. Strong bitcoin prices would lead to a stronger balance sheet, higher share price, and more effortless debt repayment without the need to sell down its cryptocurrency holdings. However, if bitcoin crashes and the value of MicroStrategy’s cryptocurrency holdings do not cover debt and certain covenants, the corporate structure would come under pressure from “spring forward” clauses. MicroStrategy holds around 152,000 bitcoin with a total cost basis of about $4.5 billion.
