Strategy’s Stock Plummets Following Bitcoin Price Drop, Experts Rule Out Forced Liquidations

Strategy, the largest corporate cryptocurrency custodian with a Bitcoin portfolio exceeding $44 billion, saw its stock price drop 11.4% on February 25th when Bitcoin prices fell below $90,000. This decline has raised concerns about the company’s financial security, as it heavily relies on cryptocurrencies for investment and funding. The company founder, Michael Saylor, maintains a long-term bullish outlook on Bitcoin despite recent market volatility. Analysts at The Kobeissi Letter indicate that forced liquidation is unlikely, citing the company’s low risk of default due to convertible notes with conversion values below current stock pricing.