CryptoQuant founder and CEO Ki Young Ju has stated on the X platform that the possibility of a financial collapse for institutional Bitcoin investor Strategy is exaggerated.
Strategy's Resilience Amidst Bitcoin Volatility
Ju strongly rejected claims made by some commentators that “Michael Saylor will sell Bitcoin,” asserting that these assertions lack concrete evidence. According to Ju, Strategy's bankruptcy would only be conceivable in an extraordinary situation, such as an asteroid impacting Earth.
Ju highlighted that any decisions regarding Bitcoin sales by Strategy would require the approval of the company's shareholders, not solely the CEO's discretion.
Recalling Michael Saylor's repeated declarations against selling Bitcoin, Ju explained that even the sale of a single BTC could inflict significant damage on the company's brand trust and potentially trigger a "death spiral" for both Bitcoin and Strategy stocks.
The manager further emphasized that the debt conversion processes facing the company do not inherently represent a "liquidation risk."
Ju outlined that Strategy possesses a range of financial avenues for restructuring its debt. These options include refinancing, issuing new bonds, securing a collateralized loan, utilizing operating cash flow, or issuing new stock. The company might also explore borrowing against its Bitcoin holdings as collateral.
Ki Young Ju concluded that current concerns are overblown. He stated that even in the most severe downside scenario where the Bitcoin price plummets to $10,000, Strategy would not face bankruptcy. Instead, the company would likely enter a debt restructuring process.