Strategy won’t sell Bitcoin to cover debt in future market downturns: Woo

TLDR

• Willy Woo stated that Strategy will not face Bitcoin liquidation in the next bear market.
• Strategy’s debt mainly consists of convertible senior notes that allow repayment flexibility.
• The company can settle its conversions using cash, common stock, or both.
• Strategy must maintain a share price above $183.19 to avoid selling Bitcoin.
• Woo linked the required share price to a Bitcoin value of around $91,502.

Bitcoin analyst Willy Woo stated that Strategy will not face Bitcoin liquidation in the next bear market. He explained that the firm’s debt structure allows flexibility without selling Bitcoin holdings. Woo made the comments on X on Wednesday.

He said, “MSTR liquidation in the next bear market? I doubt it.” His remarks highlighted the company’s improved financial position. Strategy’s debt mainly includes convertible senior notes due in 2027.

Woo noted that Strategy can settle its conversions using cash, common stock, or both. This structure offers multiple repayment options. Therefore, the company remains secure even during lower Bitcoin prices.

Woo explains Strategy’s Bitcoin debt strategy

Strategy has about $1.01 billion in debt maturing on September 15, 2027. Woo explained that the firm’s safety depends on its stock price. The company must maintain a share price above $183.19 to avoid selling Bitcoin.

That share price corresponds to a Bitcoin value near $91,502 based on a multiple net-asset-value of one. Woo emphasized that this ratio keeps Strategy financially stable. He said the company can manage its debt without reducing its Bitcoin reserves.

Bitcoin is currently trading at $101,377, down 9.92% in seven days, according to CoinMarketCap. Strategy’s stock closed at $246.99, a seven-month low. Despite the decline, analysts expect the firm to withstand future downturns.

Woo tips a chance of a partial liquidation

Woo acknowledged a small risk of partial liquidation if Bitcoin underperforms during the 2028 bull market. He said,

However, he believes the probability remains low based on current market behavior. Woo’s comments align with expectations of Bitcoin strength in coming cycles.

Bitcoin analyst The Bitcoin Therapist supported this view. He said,

Strategy currently holds around 641,205 Bitcoin worth about $64 billion, according to Saylor Tracker. This holding reinforces the company’s position as the largest corporate Bitcoin owner.

ARK Invest CEO Cathie Wood and Coinbase CEO Brian Armstrong predict Bitcoin could reach $1 million by 2030. Such growth would further secure Strategy’s long-term debt outlook.

The post Strategy won’t sell Bitcoin to cover debt in future market downturns: Woo appeared first on CoinCentral.