MicroStrategy Crashes 55%—Are They About to Dump 500K Bitcoin?

MicroStrategy (MSTR), the largest corporate Bitcoin holder, has seen its stock price drop 55% from its November high of $473.83.

With Bitcoin’s volatility and broader market uncertainty, investors are wondering if MicroStrategy’s 499,096 BTC could be at risk of being sold.

According to The Kobeissi Letter, MicroStrategy’s stock price drop could be a risk to its business model which is based on a leveraged Bitcoin strategy. The company, led by CEO Michael Saylor, has been aggressively buying Bitcoin through debt financing, making it a unique player in both tech and crypto.

Currently MicroStrategy’s average Bitcoin purchase price is $66,350 per BTC. With Bitcoin recently at $86,008.23, many are wondering if they will have to sell their holdings if the market keeps going down. But analysts say this is unlikely to happen unless Bitcoin drops below MicroStrategy’s break even point for an extended period.

Is a Bitcoin Selloff Imminent?

MicroStrategy’s Bitcoin accumulation strategy is to raise capital through convertible notes, buy BTC and drive the market up. This has allowed the company to increase its Bitcoin reserves over time while keeping a tight grip on its debt obligations.

• MicroStrategy has $8.2 billion in debt

• Bitcoin holdings are worth around $43.4 billion

• Most of its debt won’t mature until 2027 so short-term liquidation risk is low

Despite the 8% drop in Bitcoin, analysts say MicroStrategy is not at risk of immediate liquidation. The company has weathered multiple Bitcoin downturns without selling and is long term bullish on digital assets.

The Kobeissi Letter says MicroStrategy would need Bitcoin to go below $66,000 and stay there for an extended period before considering selling. Given the company’s history and financial position, that seems unlikely.

Bitcoin’s Future: Institutional Strength vs. Crypto Winter

Some analysts, including BitMEX co-founder Arthur Hayes, predict further Bitcoin price decline. But institutional adoption is providing strong support to the market. Unlike previous crypto winters, Bitcoin now has corporate and nation state investments.

• Rezolve AI recently announced a $1 billion Bitcoin investment plan, with an initial $100 million commitment.

• Several countries are exploring Bitcoin as part of their sovereign asset reserves.

• Bitcoin’s price remains above $89,000, despite recent pullbacks.

MicroStrategy’s long term bet on Bitcoin matches these broader adoption trends. With a big buffer before any forced liquidation scenario, the company seems to be able to navigate short term volatility and stick to its Bitcoin strategy.

Bottom Line: Despite MSTR’s sharp stock decline, MicroStrategy’s Bitcoin holdings remain secure for now. With institutional backing for BTC strengthening, the company’s strategy appears intact—unless Bitcoin experiences a prolonged and severe downturn below $66,000.