MicroStrategy could survive an 80% Bitcoin price drop to $18,826 without its liabilities surpassing its assets, according to capital adviser Jeff Walton. The analysis highlights the resilience of the firm’s Bitcoin treasury, even amid potential price retracements.
Walton noted, “The price of Bitcoin would need to fall to $18,826 for MicroStrategy’s assets to be worth less than their liabilities,” emphasizing the strength of its balance sheet despite BTC’s history of 80% declines, such as the 2021-2022 drop from $69,000 to $15,600.
Led by Michael Saylor, MicroStrategy continues aggressive Bitcoin accumulation, with Walton arguing that its financial leverage decreases as BTC rises. He dismissed critics labeling the strategy as a “Ponzi” or “pyramid scheme,” stating its balance sheet is “underutilized from a leverage perspective.”
Source: Cointelegraph
