Strategy (MSTR) Faces Market Slump, But Bitcoin Sale Unlikely, Bitwise Confirms
Strategy (MSTR) Faces Market Slump – Fears that Strategy (MSTR) could be forced to dump its massive Bitcoin holdings due to a falling share price are unfounded, according to Bitwise chief investment officer Matt Hougan. In a note published Tuesday, Hougan said critics suggesting the company may face pressure to sell are “just flat wrong,” emphasizing chairman Michael Saylor’s long-standing conviction in Bitcoin.
Hougan argued that there is no mechanism that triggers a forced sale simply because Strategy’s stock trades below its net asset value (NAV). “There is nothing about MSTR’s price dropping below NAV that will force it to sell,” he noted.
No Urgent Debt Pressure Until 2027
Concerns escalated last week after CEO Phong Le stated that selling Bitcoin could be a “last resort” if Strategy’s market capitalization fell below the value of its holdings and traditional financing options dried up. Still, Hougan sees no scenario where such drastic action is needed anytime soon.
The company, he said, is not facing immediate financial strain. With Bitcoin trading around $92,000, Strategy’s holdings still sit 24% above its average acquisition price of $74,436. Additionally, the firm has no debt due until 2027 and maintains $1.4 billion in cash, enough to comfortably cover its $800 million in annual interest payments for at least 18 months.
Market Pressure and Potential MSCI Delisting
Strategy’s stock has dropped 24.69% in the past 30 days, closing Friday at $186.01. Part of the decline may stem from MSCI’s announcement that it may exclude companies whose balance sheets hold more than 50% crypto assets, a move that could force index-tracking funds to sell.
However, Hougan downplayed the potential impact. He noted that index additions and deletions often cause smaller-than-expected market reactions, pointing out that when MSTR was added to the Nasdaq-100 in December, funds were required to buy $2.1 billion worth of shares—yet the price “barely moved.”
