When Will MicroStrategy Get Liquidated on BTC? Saylor Answers

During Strategy’s latest earnings call, Michael Saylor laid out exactly what it would take for his company to face liquidation.

Bitcoin dropped below $65,000 this week, triggering fresh concerns about corporate treasuries. Strategy reported a $12.4 billion quarterly loss on its holdings. The numbers sparked intense speculation across trading desks and investor forums about when MicroStrategy get liquidated on BTC might become reality.

Saylor’s response caught most analysts off guard. Bitcoin would need to plunge to $8,000 and stay there until 2032.

Saylor’s Liquidation Price Explained

Strategy currently holds 713,502 BTC. The company bought these coins at $76,052 each on average. Bitcoin is hovering around $66,000 right now. That puts them down about $6.5 billion on their holdings.

CEO Phong Le didn’t dodge questions during the February 5 earnings call. He said liquidation won’t happen unless Bitcoin drops to $8,000 and sits there until 2032. That’s a 90% crash from where we are today.

Strategy built up a $2.25 billion cash cushion. This money covers dividend payments and debt interest for the next two to three years. They won’t have to dump any Bitcoin.

Also Read: Crypto Market Cycles Explained: Bull Markets, Bear Markets & Bitcoin Halving

Why Traditional Liquidation Math Doesn’t Apply

Unlike retail traders on leveraged exchanges, Strategy doesn’t face margin calls. Their debt structure is fundamentally different.

Most of Strategy’s $8 billion in debt consists of unsecured convertible notes. Lenders can’t seize the Bitcoin if prices tank. They accepted MicroStrategy’s promise to repay, with options to convert debt into MSTR shares or receive cash upon maturity.

The company’s legacy software business generates $120-130 million quarterly. This barely covers the $689 million in annual interest and dividend obligations. But that’s the beauty of their structure. They’re not forced sellers.

Could Strategy Actually Go Bankrupt?

The theoretical bankruptcy threshold sits around $20,000 per Bitcoin. At that price, Strategy’s total debt would exceed its Bitcoin holdings’ value.

But theoretical doesn’t mean automatic. Strategy has approximately $7 billion of outstanding debt that matures in increments over the next decade. They only need to make nominal interest payments and have sufficient cash when bonds mature.

The real risk? A wave of bondholders demanding repayment in 2028. Many bonds issued in 2024 and 2025 include put options, allowing investors to demand early repayment. If Bitcoin trades near crisis levels then forced sales could happen.

Also Read: Bitcoin Price Prediction 2026

Saylor Remains Defiant Despite Market Chaos

“Strategy has built a digital fortress anchored by 713,502 bitcoins,” Saylor declared during the earnings call. He emphasized their “indefinite bitcoin horizon.”

The market disagreed violently. MSTR shares crashed 17% on February 5 alone. The stock now trades 67% below its post-election peak. Even bullish analyst Joseph Vafi slashed his price target by 60%, from $474 to $185.

Yet Strategy keeps buying. They acquired 855 BTC for $75.3 million as recently as February 2. Saylor shows zero intention of selling.

The mNAV Premium That Changed Everything

Strategy’s market Net Asset Value (mNAV) currently sits at 1.09. This means the company trades at just a 9% premium to its Bitcoin holdings.

During Bitcoin’s rally to $120,000 last year, mNAV soared well above 2.0. Traders flocked to MSTR shares because they seemed more profitable than buying Bitcoin directly. That premium evaporated when Bitcoin crashed in October.

If mNAV drifts closer to 1.0, it signals fading enthusiasm. The market sees little upside beyond the underlying BTC. This creates a vicious cycle. Lower premiums make it harder to issue stock. Less stock issuance means fewer Bitcoin purchases.

Also Read: How Secure Is Bitcoin – Can It Ever Be Hacked?

Strategy’s Road Ahead Looks Rocky

The company achieved a 22.8% Bitcoin yield in 2025. They raised $25.3 billion in capital last year alone. Their capital structure remains intact despite the losses.

Polymarket data shows only 27% chance that Strategy sells any Bitcoin by year-end. Traders bet Saylor stays the course.

The bigger threat isn’t liquidation. It’s refinancing risk. When bonds mature and Bitcoin trades below purchase prices, will lenders extend favorable terms? Will shareholders accept dilution through stock issuances at depressed prices?

The $8,000 threshold Saylor mentioned sits 88% below current prices. You’d need a five-year bear market worse than anything crypto has seen.

Saylor’s built his reputation on Bitcoin maximalism. His company’s survival depends on that bet working out.

Also Read: What is Bitcoin Genesis Day- 2026?

At what Bitcoin price will MicroStrategy face liquidation? 

CEO Phong Le stated Bitcoin would need to drop to $8,000 and remain there until 2032 before liquidation becomes a concern. This represents a 90% decline from current levels.

Does MicroStrategy have margin calls on their Bitcoin holdings? 

No. Strategy’s debt consists of unsecured convertible notes without margin call triggers. Lenders cannot forcibly seize their Bitcoin holdings even if prices crash.

How much Bitcoin does MicroStrategy own right now? 

Strategy owns 713,502 BTC bought at an average of $76,052 per coin. The total investment comes out to roughly $54 billion.

Can MicroStrategy continue buying Bitcoin despite losses? 

Yes. The company maintains a $2.25 billion USD reserve covering 2-3 years of debt obligations, allowing continued purchases without forced sales.

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