Analysts at Goldman Sachs believe that Michael Saylor's Strategy company will have to sell bitcoins if BTC falls by 50% or more.
Saylor himself rules out the possibility of selling the bitcoins stored on Strategy's balance sheet, and claims that the firm "will buy all the coins if their rate drops to $1." However, Goldman Sachs employees think differently. In their opinion, if the value of BTC collapses by 50% or more, the company's creditors will refuse to issue the organization new loans to pay off the existing debt. In this case, the institution will run out of money, and its employees will have to exchange digital assets for fiat currency.
As of December 2024, Strategy's debt was $7,24 billion, and its value has more than tripled in a year. Moreover, in the fourth quarter of 2024, the company suffered a loss in the amount of $670,8 million, having received income of only $120,7 million. Therefore, the forecast of Goldman Sachs specialists is quite reasonable.
Michael has 46,8% of the voting power, so he can prevent the liquidation of Bitcoin, but in this case the company will be at risk of bankruptcy because it will not be able to pay off its creditors. In addition, Saylor's plan to raise capital by selling convertible bonds risks falling apart if Bitcoin will continue to fall in price. Investors are already reluctant to buy these securities, as evidenced by reduction conversion premium.
The recent transactions related to investments in BTC do not contribute to the growth of demand for Strategy assets. The 12 most recent bitcoin purchases made by the company since November 25, 2024, turned around for the firm in unrealized losses, and investments in cryptocurrency, which began in September 2020, brought the organization a profit of only 34%.
Strategy's Bitcoin Purchase Moments
