CandleFocus

Alliance Partners Reveal $60K as MicroStrategy Bitcoin Liquidation Price, but There’s a Catch

Partners at crypto accelerator resource Alliance have raised concerns about MicroStrategy's Bitcoin liquidation event. They believe that if Bitcoin falls below $60,000, it could trigger a crisis that is 100 times worse than the collapses of Terra and FTX. However, their analysis overlooks an important detail: MicroStrategy does not have a forced liquidation price for its Bitcoin holdings. The company's Bitcoin purchases are backed by loans obtained from convertible senior notes, and lenders do not have the right to seize assets for repayment. While MicroStrategy could sell its Bitcoin in certain situations, there is no set price requirement.

Related News