Crypto analyst Willy Woo says it would need to be “one hell of a sustained bear market” to force Strategy to liquidate any of its Bitcoin.
Michael Saylor‘s Strategy (MSTR) won’t have to sell off part of its Bitcoin stash to cover its debt in the next significant crypto market downturn, according to Bitcoin analyst Willy Woo.
“MSTR liquidation in the next bear market？ I doubt it,” Willy Woo said in an X post on Wednesday.
Strategys debt consists mainly of convertible senior notes. Strategy is set to settle its conversions as they fall due by paying either cash, common stock, or a combination of both, at its election.
Strategy safe from liquidation in next bear market
For the Sept. 15, 2027 holder put right date, Strategy will have around $1.01 billion in debt due. To avoid needing to sell Bitcoin (BTC) to repay it, Strategys stock must be trading above $183.19, Woo said.
That price roughly corresponds to a Bitcoin price of around $91,502, and assuming a multiple net-asset-value (mNAV) of 1, he added.
Source: Willy Woo
Bitcoin analyst The Bitcoin Therapist said that “Bitcoin would have to perform horribly” in the next market downturn for Strategy to have to start selling off Bitcoin.
“Would be one hell of a sustained bear market to see any liquidation for Strategy,” they added. Strategy holds around 641,205 Bitcoin, which is worth around $64 billion at the time of publication, according to Saylor Tracker.
Strategys stock closed trading on Tuesday at a seven-month low, down nearly 6.7% on the day to $246.99. Meanwhile, Bitcoin is trading at $101,377, down 9.92% over the past seven days, according to CoinMarketCap.
Woo tips a chance of a “partial liquidation”
While Woo does not expect a liquidation in the next bear market, he warned that it is possible if Bitcoin fails to rally strongly during the anticipated 2028 bull market.
Related: Bitcoin shows exhaustion as analysts say $125K target unlikely in 2025
“Ironically, there‘s a chance of a partial liquidation if BTC doesn’t climb in value fast enough in an assumed 2028 bull market,” Willy Woo said.
Some crypto executives, such as ARK Invest CEO Cathie Wood and Coinbase CEO Brian Armstrong, have forecasted that Bitcoin will reach $1 million by 2030.