The firm’s $66 billion Bitcoin holdings face greater threat from capital market access than crypto volatility, per analysis.
MicroStrategy’s $66 billion Bitcoin treasury is more exposed to capital market disruptions than to BTC price declines, according to a new report. The company’s model depends on raising fresh capital to service $1.76 billion in annual obligations, including preferred dividends and debt claims totaling $22 billion.
Unlike traditional Bitcoin-backed loans, MicroStrategy’s debt lacks margin calls tied to BTC prices, reducing immediate liquidation risks. However, a 96% drop in Bitcoin would still leave its holdings insufficient to cover convertible notes, shifting focus to its ability to refinance.
The analysis highlights that sustained capital market access is critical for the firm’s strategy, as its obligations far exceed current liquidity buffers.