Strategy Won’t Be Forced to Sell Bitcoin Due to Market Drops

Despite concerns that Strategy (MSTR) may sell its substantial Bitcoin holdings if its share price falls, Bitwise CIO Matt Hougan argues this won’t happen. He points out that MSTR’s Bitcoin is not subject to forced selling below its NAV (net asset value) and that such a move would significantly impact the broader Bitcoin market. Instead, Hougan emphasizes Strategy has ample financial cushion, including $1.4 billion in cash, allowing it to comfortably manage interest payments for several years. Furthermore, he believes the company’s position is not dire enough to warrant selling Bitcoin in anticipation of a market decline.