"Strategy May Need to Sell 12,800 Bitcoins to Repay Some Debt... Low Likelihood of Realization"

An analysis has emerged suggesting that if Strategy sells Bitcoin (BTC) to repay some of its debt, the market could experience a 5% to 10% decline. However, the likelihood of an actual sale is considered low.

On the 9th (local time), Odaily reported, "Strategy indicated in a report that if Bitcoin prices continue to fall, they might sell some Bitcoin to cover interest, dividends, and debt repayment," adding, "If some debt ($1 billion) is repaid in the current situation, 12,800 BTC could be sold." It continued, "This represents 2.4% of Strategy's Bitcoin holdings. If this amount is released into the market, a 5% to 10% price drop is expected."

Furthermore, "To cover only short-term expenses such as annual interest and dividends ($18.13 billion), selling 2,318 BTC would suffice," noting, "This is 0.5% of the total holdings, and the market impact would be minimal." Additionally, "If all existing debt ($8.22 billion) is repaid, a sale of 105,000 BTC (20% of total holdings) is expected, and Bitcoin prices would plummet," it added.

Moreover, "Considering the continuous decline in Bitcoin prices and the poor performance of the core business, data analytics software, selling Bitcoin might become an unavoidable reality," it assessed, "It is necessary to closely monitor Strategy's actions."

Nevertheless, the media pointed out that the likelihood of Strategy actually selling Bitcoin is limited. The media stated, "This is not the first time the possibility of Bitcoin sales has been mentioned in a report," adding, "Similar possibilities have been mentioned in previously submitted reports." It also cited △Michael Saylor's 48% voting power making it difficult to pass a sale proposal △the availability of sufficient countermeasures such as additional bond and stock issuance unlike in the past △the increasing global adoption of Bitcoin raising the possibility of price increases.

Meanwhile, Strategy submitted a report (8-K) to the U.S. Securities and Exchange Commission (SEC) on the 7th (local time) stating, "A significant decline in the market value of Bitcoin could negatively impact the ability to fulfill financial obligations," and "If funding fails, Bitcoin may need to be sold to meet financial obligations." Currently, Strategy holds 528,185 BTC at an average purchase price of $67,458. The unrealized loss from Bitcoin purchases in the first quarter of this year reached $5.91 billion.

As of 6:51 PM, Bitcoin is trading at $77,478, down 2.13% from 24 hours ago, based on the Binance USDT market.