{"id":18093,"date":"2024-10-25T18:38:52","date_gmt":"2024-10-25T15:38:52","guid":{"rendered":"https:\/\/forklog.com\/en\/bitmex-assesses-the-likelihood-of-microstrategy-liquidating-bitcoin-reserves\/"},"modified":"2024-10-25T18:38:52","modified_gmt":"2024-10-25T15:38:52","slug":"bitmex-assesses-the-likelihood-of-microstrategy-liquidating-bitcoin-reserves","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/bitmex-assesses-the-likelihood-of-microstrategy-liquidating-bitcoin-reserves\/","title":{"rendered":"BitMEX Assesses the Likelihood of MicroStrategy Liquidating Bitcoin Reserves"},"content":{"rendered":"<p>It is deemed &#8220;extremely unlikely&#8221; that market conditions will compel MicroStrategy to sell its bitcoin reserves, according to BitMEX Research experts.<\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">MicroStrategy Bonds \u2013 When Liquidation?<\/p>\n<p>We look at MSTR&#8217;s outstanding bonds &#038; look at their structure. We assess the possibility MSTR could be forced to sell Bitcoin. We argue that forced liquidations are unlikely, based on the current debt structure<a href=\"https:\/\/t.co\/mQK4ODuUlM\">https:\/\/t.co\/mQK4ODuUlM<\/a><\/p>\n<p>\u2014 BitMEX Research (@BitMEXResearch) <a href=\"https:\/\/twitter.com\/BitMEXResearch\/status\/1849522798072312115?ref_src=twsrc%5Etfw\">October 24, 2024<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Analysts noted the company&#8217;s stock reaching a new all-time high. The significant growth began when MicroStrategy adopted a strategy of purchasing bitcoin for its balance sheet in August 2020, following a period of stagnation since the early 2000s.<\/p>\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/MSTR-Stock-Price-MicroStrategy-Inc.-Stock-Quote-U.S.-Nasdaq-MarketWatch-Google-Chrome-2.webp\" alt=\"MSTR-Stock-Price-MicroStrategy-Inc.-Stock-Quote-U.S.-Nasdaq-MarketWatch-Google-Chrome-2\" class=\"wp-image-243939\"\/><figcaption class=\"wp-element-caption\">Source: <a href=\"https:\/\/www.marketwatch.com\/investing\/stock\/mstr\">MarketWatch.<\/a><\/figcaption><\/figure>\n<p>Since then, the firm has accumulated the largest corporate reserves in bitcoin, amounting to 252,220 BTC. The company spent approximately $9.9 billion acquiring the digital gold, with current asset valuations exceeding $17 billion.<\/p>\n<p>At a certain point, MicroStrategy began actively utilizing debt capital by issuing convertible bonds to raise funds for bitcoin purchases.\u00a0\u00a0<\/p>\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/MicroStrategy-Bonds-When-Liquidation-BitMEX-Blog-Google-Chrome.webp\" alt=\"MicroStrategy-Bonds-When-Liquidation-BitMEX-Blog-Google-Chrome\" class=\"wp-image-243940\"\/><figcaption class=\"wp-element-caption\">Source: BitMEX Research.<\/figcaption><\/figure>\n<p>BitMEX experts dismissed investor concerns about the potential liquidation of the company&#8217;s crypto reserves to meet obligations. With a current market capitalization exceeding $43 billion, MicroStrategy has no need for such measures, analysts believe. The bond debt amounts to approximately $4.25 billion.<\/p>\n<p>However, they pointed to the history of the Grayscale Bitcoin Trust. The structure traded at a premium to the underlying asset&#8217;s price, but after its <a href=\"https:\/\/forklog.com\/en\/news\/sec-approves-all-11-spot-bitcoin-etf-applications\">conversion<\/a> to an ETF in January 2024, it experienced an outflow of funds. According to <a href=\"https:\/\/sosovalue.com\/assets\/etf\/us-btc-spot\">SoSoValue<\/a>, the process continues.<\/p>\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"183\" src=\"https:\/\/forklog.com\/wp-content\/uploads\/Bitcoin-ETF-Dashboard-Latest-BTC-Spot-ETF-Daily-Data-and-Charts-of-Inflow-and-Outflow-Google-Chrome-1024x183.jpg\" alt=\"Bitcoin-ETF-Dashboard-Latest-BTC-Spot-ETF-Daily-Data-and-Charts-of-Inflow-and-Outflow-Google-Chrome\" class=\"wp-image-243941\" srcset=\"https:\/\/forklog.com\/wp-content\/uploads\/Bitcoin-ETF-Dashboard-Latest-BTC-Spot-ETF-Daily-Data-and-Charts-of-Inflow-and-Outflow-Google-Chrome-1024x183.jpg 1024w, https:\/\/forklog.com\/wp-content\/uploads\/Bitcoin-ETF-Dashboard-Latest-BTC-Spot-ETF-Daily-Data-and-Charts-of-Inflow-and-Outflow-Google-Chrome-300x54.jpg 300w, https:\/\/forklog.com\/wp-content\/uploads\/Bitcoin-ETF-Dashboard-Latest-BTC-Spot-ETF-Daily-Data-and-Charts-of-Inflow-and-Outflow-Google-Chrome-768x137.jpg 768w, https:\/\/forklog.com\/wp-content\/uploads\/Bitcoin-ETF-Dashboard-Latest-BTC-Spot-ETF-Daily-Data-and-Charts-of-Inflow-and-Outflow-Google-Chrome-1536x274.jpg 1536w, https:\/\/forklog.com\/wp-content\/uploads\/Bitcoin-ETF-Dashboard-Latest-BTC-Spot-ETF-Daily-Data-and-Charts-of-Inflow-and-Outflow-Google-Chrome.jpg 1581w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\">Source: SoSoValue.<\/figcaption><\/figure>\n<p>If at some point the premium in MicroStrategy&#8217;s stock turns into a discount, shareholders might find it advantageous to liquidate the firm&#8217;s bitcoin reserves. However, analysts consider such a scenario &#8220;extremely unlikely&#8221;\u2014for this to occur, the cryptocurrency&#8217;s price would need to drop to $15,000.<\/p>\n<p>The Microsoft board <a href=\"https:\/\/t.me\/forklog\/40456\">proposed<\/a> that shareholders support the &#8220;evaluation of potential investments&#8221; in digital gold. MicroStrategy founder Michael Saylor reached out to the head of the software company, Satya Nadella, with advice on how to &#8220;make another trillion dollars for shareholders.&#8221;<\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">Hey <a href=\"https:\/\/twitter.com\/satyanadella?ref_src=twsrc%5Etfw\">@SatyaNadella<\/a>, if you want to make the next trillion dollars for <a href=\"https:\/\/twitter.com\/search?q=%24MSFT&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$MSFT<\/a> shareholders, call me. <a href=\"https:\/\/t.co\/NPnVvL7Wmj\">pic.twitter.com\/NPnVvL7Wmj<\/a><\/p>\n<p>\u2014 Michael Saylor\u26a1\ufe0f (@saylor) <a href=\"https:\/\/twitter.com\/saylor\/status\/1849790766945587241?ref_src=twsrc%5Etfw\">October 25, 2024<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Previously, Saylor announced his intention to transform MicroStrategy into a bitcoin bank with a capitalization of $1 trillion.<\/p>\n<p>Some have linked these plans to his support for storing cryptocurrencies in large financial institutions. The businessman dismissed community concerns amid criticism.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>It is deemed &#8220;extremely unlikely&#8221; that market conditions will compel MicroStrategy to sell its bitcoin reserves, according to BitMEX Research experts. MicroStrategy Bonds \u2013 When Liquidation? We look at MSTR&#8217;s outstanding bonds &#038; look at their structure. We assess the possibility MSTR could be forced to sell Bitcoin. We argue that forced liquidations are unlikely, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":18092,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[788,1207,1138],"class_list":["post-18093","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bitmex","tag-microstrategy","tag-opinions"],"aioseo_notices":[],"amp_enabled":true,"views":"23","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/18093","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=18093"}],"version-history":[{"count":0,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/18093\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/18092"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=18093"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=18093"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=18093"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}