MicroStrategy Safe From Forced BTC Sales, Cantor Fitzgerald Tells CNBC

MicroStrategy faces no forced Bitcoin sales as Cantor Fitzgerald tells CNBC its debt has no margin-call triggers.

A recent statement from Cantor Fitzgerald has addressed growing questions about whether MicroStrategy could ever be required to sell its Bitcoin holdings.

In an interview with CNBC, the firm said that current conditions create no scenario in which MicroStrategy would be forced to liquidate any of its BTC reserves.

Cantor Fitzgerald Outlines Why No Forced Selling Exists

Cantor Fitzgerald told CNBC that MicroStrategy’s capital structure shields the company from forced liquidation.

Brett Knoblauch, Head of Digital Assets Research at the firm, explained that MicroStrategy’s debt consists mainly of unsecured convertible notes.

These notes do not carry margin-call conditions, and they are not tied to Bitcoin’s market price.

Knoblauch added that because the debt is unsecured, lenders cannot require MicroStrategy to sell Bitcoin even during extreme volatility.

He stated that “there’s nothing out there that could force MicroStrategy to sell their Bitcoin,” and he noted that this structure plays an important role in the company’s strategy.

He also mentioned that MicroStrategy’s decision to use long-dated debt created more room for volatility.

The maturities extend years into the future, and the interest rates are low. This provides the company with more flexibility while it continues holding Bitcoin as part of its treasury plan.

How MicroStrategy Uses Its Treasury Structure

MicroStrategy has built one of the world’s largest Bitcoin treasuries. The company began purchasing Bitcoin in 2020, and it has since expanded its holdings across numerous market cycles.

The treasury approach uses debt structures that do not connect repayments to the price of Bitcoin.

Knoblauch said this approach gives the company more control over its assets. He noted that no lender can call for liquidation based on Bitcoin declines.

The company’s long-term plan centers on maintaining its Bitcoin strategy and using debt tools that avoid short-term liquidity stress. The approach also relies on predictable financing terms.

Because the notes carry low interest rates and distant maturity dates, the company can maintain its positions through periods of volatility.

Market researchers say this separates MicroStrategy from firms with leveraged exposure backed by collateral.

Related Reading: Schiff Attacks MicroStrategy: Bitcoin Strategy “Destroyed Shareholder Value”

Institutional Support and Long-Term Planning

MicroStrategy’s strategy has continued to attract institutional attention.

The company’s chairman, Michael Saylor, has stated that Bitcoin forms the core of the firm’s long-term treasury plan.

This view has remained consistent through various market conditions.

Knoblauch said institutional investors understand that MicroStrategy’s debt structure is stable.

The combination of unsecured notes and extended maturities creates an environment where the firm can wait out market changes.

This structure also supports the company’s stated view that Bitcoin is a long-term asset.

Analysts report that the company’s approach contrasts with structures used by firms that rely on collateral-backed loans.

Because MicroStrategy does not use Bitcoin as collateral for its debt, it avoids forced sales during downturns. The company has stated that it plans to continue with this model.

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