The recent price fluctuations of Bitcoin have always been a hot topic, and this time all eyes are focused on micro strategy and his co-founder, Michael Saylor. With Bitcoin who slides less than $ 75,000, the worries grow that micro strategy may be forced to sell its huge Bitcoin companies to prevent liquidation.
Prominent crypto trader Doctor Profit has sent a daring message to Saylor, which suggests that he could be the next major victim of the market.
MicroStrategy liquidation crisis ahead?
MicroStrategy is one of the largest institutional holders of Bitcoin, which has collected more than 528.185 BTC with a value of $ 40.94 billion So far.
According to Doctor profit, Bitcoin is now only 10% above the average purchase price of micro strategy of $ 66.384. If the market continues to fall, the company may have to sell BTC to prevent liquid risks.
This has created fear among investors, who are concerned that a potential Bitcoin sale through micro strategy could further push the BTC prices. For now, MicroSstratey has stopped further Bitcoin purchases, possibly waiting to see where the market is going.
MSTR -Shares saw a decrease of 15%
In addition to the decrease in Bitcoin lose more than 15% In value in the past week. This sharp decline is fed by the broader unrest on the market, including the constant global economic uncertainty and the recent correction in crypto prices.
Rumors about sec archiving adding threat
Add to market anxiety, rumors suggest that micro strategy may have submitted an 8-K form on 7 April to the US Securities and Exchange Commission (SEC). This document reportedly warns that if the price of Bitcoin continues to fall, the company may have to sell its participations to repay debts.
However, a closer assessment of the submission shows that MicroStrategy has included similar warnings in its earlier reports. This suggests that the explanation is a routine risk -opponating instead of an immediate liquidation threat.
Is micro strategy real risk?
Although the warning sounds alarming, it is important to consider the financial position of micro strategy. The company has used billions of debts to buy Bitcoin, making its investment strategy a risky, risky game.
So far, Saylor has maintained confidence in Bitcoin and repeatedly stated that he has no plans to sell. However, if Bitcoin falls under a critical threshold, this can activate margin calls on the loans that support Bitcoin Holdings from MicroSstratey.
In such a case, the company may have to sell part of its assets, Bitcoin or otherwise, to keep floating.