Bitcoin analyst Willy Woo expresses confidence that Strategy, under the leadership of Michael Saylor, is unlikely to liquidate its Bitcoin
In a recent post on X from November 5, Woo observed that a sell-off by Strategy in the upcoming bear market seems improbable.
He highlighted that the company’s debt consists mainly of convertible senior notes, enabling the firm to fulfill its financial obligations through cash, shares, or a combination when due.
Did you know?
Subscribe – We publish new crypto explainer videos every week!
What Are Flash Loans? TOP Ways to Make Passive Income Explained
A major debt obligation includes approximately $1.01 billion, maturing on September 15, 2027. Woo elaborated that Strategy will likely refrain from liquidating Bitcoin to cover this debt if the stock price stays above $183.19.
The Bitcoin Therapist, a market analyst, noted that for Strategy to contemplate selling coins, there would need to be a significant decline in Bitcoin’s performance. They suggested that such a scenario would involve a lengthy and intense bear market.
Currently, Strategy possesses around 641,205 Bitcoins, valued at an estimated $64 billion, based on the latest figures from Saylor Tracker.
While Woo does not foresee forced liquidation in the near term, he did express some caution for the longer term.
If Bitcoin fails to show substantial growth during the expected bull market of 2028, he indicated there could be a risk of partial liquidation by Strategy.
Recently, Saylor stated that the company is not pursuing the acquisition of other firms that have Bitcoin on their balance sheets, explaining their strategic focus. Read more about it here.