Key Takeaways
- •Rumors of Michael Saylor facing Bitcoin liquidation are false; MicroStrategy owns its Bitcoin outright, meaning falling prices do not trigger forced selling.
- •The primary concern for MicroStrategy is managing its debt and repayment schedules, not Bitcoin price fluctuations or liquidation risks.
- •Despite recent market declines, MicroStrategy’s Bitcoin holdings remain profitable, underscoring the focus on its long-term strategy and investor confidence.
Amidst Bitcoin's slide below $100,000, new rumors have circulated within the crypto market, leading traders to question whether Michael Saylor's MicroStrategy may face a Bitcoin liquidation risk. This discussion gained traction on X (formerly Twitter) after some analysts claimed MicroStrategy could be compelled to sell its Bitcoin holdings if the price fell near $75,000.
An analyst on X, known as Reflection, initiated the debate by stating, "If $BTC hits $75K, Saylor’s position gets liquidated." They accompanied this assertion with a multi-year chart illustrating Bitcoin's strong rally in 2024 and a subsequent pullback in 2025, with Bitcoin's price then highlighted near $99,500.
The claim rapidly spread across X, but the actual financial details suggest a different scenario. This conversation arises at a time when MicroStrategy's approach to Bitcoin remains a frequent subject of market discussion. Furthermore, the company continues to hold gains on its Bitcoin holdings, even after the recent price drop.
MicroStrategy's Bitcoin Holdings Face No Liquidation Trigger
In response to the circulating claim, several users clarified that a decline in Bitcoin's price does not directly affect the company's existing holdings. MicroStrategy owns its Bitcoin outright and does not engage in leveraged trading or the use of futures contracts, which means no exchange can force a liquidation.
"There’s no liquidation risk for Saylor, that part is clear," stated Arthur from BingX, addressing the confusion. He then pivoted to a more pertinent concern: "With all the money he borrowed, what happens when those lenders eventually want their cut?" His remark shifted the conversation, highlighting that beyond the liquidation myth, debt obligations remain a significant factor. Consequently, MicroStrategy must adhere to its repayment schedules, irrespective of Bitcoin's market price.
Even with the most recent price decline, the company's overall Bitcoin position remains profitable. MicroStrategy's average purchase price is approximately $74,057. This figure follows its latest acquisition on November 10, when the company purchased an additional 487 BTC, bringing its total holdings to 641,000 BTC.
Critics Voice Concerns as MicroStrategy Expands Its Bitcoin Investment
Some critics contend that Saylor's strategy has reached an extreme point. Dr. Julian Hosp argued, "Saylor spent over 27 billion USD in the past year on buying Bitcoin." He noted that the weekly run rate for these purchases is close to half a billion dollars. Dr. Hosp added that these purchases "didn’t move" the market and that the investments remain "break even or down bad," echoing frustration from some equity holders.
Similarly, Silver Ape King shared a comparable viewpoint, writing, "Imagine holding $MSTR and being down almost 50% in just 6 months."
Despite these reactions, Saylor continues to reaffirm his commitment to Bitcoin. He recently predicted that Bitcoin would surpass gold by 2035. In an interview with Yahoo Finance, he stated that 2035 would mark a significant point, referring to it as "0.99 year" in relation to the mining of the last 1% of Bitcoin, which "will be released over the next 100 years." He further described Bitcoin as the focal point of a "digital gold rush," expressing his belief that scarcity and increasing adoption will drive long-term value appreciation.
Market Pullback Renews Scrutiny of MicroStrategy's Strategy
Bitcoin is currently trading near $96,777, having experienced a decline of nearly 6% in the past 24 hours, according to CoinMarketCap. Additionally, stocks linked to the cryptocurrency sector have seen a downturn since mid-October. MicroStrategy Inc. (MSTR) closed at $208.54 on November 13, marking a 7.15% decrease, as reported by Yahoo Finance.
However, Saylor maintains that investor confidence remains robust. "The fundamentals of the industry are so much better today than they were 12 months ago," he remarked.
Upon closer examination of the financial data, the liquidation rumor appears unfounded. The more pertinent question now revolves around how MicroStrategy will manage its debt obligations and for how long it can sustain its substantial Bitcoin holdings without encountering pressure from market conditions or its lenders.
Also Read: Bitcoin Price Drops Below $98K Amid Heavy Long-Term Holder Selling