Since the recent Bitcoin crash, Michael Saylor’s Bitcoin strategy has been in the spotlight. There was a lot of speculation about what was going to happen. Thaler’s company and strategy (MSTR), and its BTC holdings if the flagship cryptocurrency continues to plummet.
Schiff predicts Saylor’s strategy will go bankrupt due to Bitcoin crash
in ×postfamous economist peter schiff He said Strategy’s entire business model is a fraud. He went on to ask Thaler to discuss this proposition. He added that he believes that no matter what happens with Bitcoin, Strategy will eventually go bankrupt. In particular, MSTR’s mNAV has recently fallen below the value of its Bitcoin holdings, putting Saylor’s strategy at risk.
Saylor’s strategy has always benefited from trading his Bitcoin holdings at a premium price. However, mNAV is currently trading below 1, raising concerns about what will happen to the company if the Bitcoin bear market continues. last week, Arkham suggested It turns out Saylor and his company were offloading BTC. but, Saylor was immediately fired. states that these rumors are not true.
Thaler also said that Strategic was buying Bitcoin every day last week despite the Bitcoin crash, and the company acknowledged this in its announcement this week. $835 million purchase. This was the largest purchase since July, when it purchased $2.46 billion worth of BTC. However, the company purchased these coins at an average price of $102,171, which is much higher than the current price of BTC.
This latest purchase represents another significant drain on Strategy’s Bitcoin supply. CryptoQuant data It shows that 43% of Saylor’s company’s BTC holdings are in losses, while 57% are in profits. This is based on the average purchase price per purchase, not the total. Notably, the average purchase price of the company’s total BTC holdings is $74,433.
BTC may still fall below the strategy’s average purchase price
veteran trader Peter Brandt predicted Bitcoin could fall below $50,000, and Strategy’s BTC holdings could go underwater. Brandt said BTC could test Saylor “severely” as it remains below Saylor’s average purchase price. The trader explained: less than $50,000 This can occur when recent parabolic advance violations are similar to past events.
If Bitcoin falls below Strategy’s average purchase price, the company could be at risk of having to sell its holdings to pay off debt. crypto critic Mr. Dom Kwok argued Saylor’s company will be forced to sell BTC to pay interest. he added: financial company If mNAV falls below 1, you will no longer be able to operate and will have to sell your BTC or go bankrupt.
crypto critic Mana warned That the market is about to witness the collapse of the strategy. He claimed investors are exiting the company as profits evaporate. Therefore, he advised market participants to exit MSTR stock.
As of this writing, the price of Bitcoin has risen over the past 24 hours and is trading at around $91,400. data From CoinMarketCap.
Featured image from Pixabay, chart from Tradingview.com
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