Hold on Tight, Bitcoin Lovers!

So, here’s the scoop from Bitcoin guru Willy Woo: Strategy (MSTR) isn’t exactly sweating bullets about selling its Bitcoin stash during the next big market shake-up. Why? Well, the company is sitting on a whopping 641,205 Bitcoin, which is like having $64 billion worth of digital gold in your virtual pocket. Talk about a serious piggy bank!

Let’s Talk Debt

Now, about that debt—Strategy’s got some convertible senior notes chilling until September 15, 2027. Willy’s done some math magic and figured out that their stock needs to hit over $183 by that date. Otherwise, they might have to dig into their Bitcoin treasure to cough up some cash.

What’s the Plan?

The company can play it cool and settle those notes with dollars, shares, or a mix of both. This means they get to stay calm while the market does its wobbly dance without needing to sell off their precious Bitcoins right away.

Liquidation? Nah!

Willy Woo doesn’t think we’ll see a liquidation party anytime soon, either. He tweeted some pretty graphics that laid out how their debt, the due date, and the stock price line up. Basically, Bitcoin would need to take a nose dive for a long time before Strategy would even consider selling.

What If the Market Sucks?

However, he did toss in a little caution. If Bitcoin doesn’t zoom back up during the expected 2028 bull run, there might be a possibility of a partial sale. But that’s if the recovery drags on and leaves Strategy’s stock gasping for air.

The Bright Side

On the flip side, some big names like ARK Invest’s Cathie Wood and Coinbase’s Brian Armstrong have their sights set on Bitcoin hitting a cool million bucks by 2030. Now that’s a hopeful outlook!

Shifting Pressures

The whole convertible note setup means they won’t get hit with a surprise margin call that forces them to sell in a panic. They’ve got a little breathing room by settling with stock, pushing the pressure onto MSTR’s share price rather than just on Bitcoin.

Bear Market Survival

So, Strategy is looking pretty snug against a typical bear market. However, if they end up with both Bitcoin and MSTR equity in a slump for too long, they may have to make some adjustments. But not to worry! The big brains are saying there’s little chance of liquidation in the near future, although everyone’s got an eye on the critical year of 2028.

Image credit: Poster from Outside Bozeman.