A recent statement from investment bank Cantor Fitzgerald has addressed market concerns, confirming that MicroStrategy faces no scenario where it would be forced to sell its massive Bitcoin holdings. In an interview with CNBC, Brett Knoblauch, Head of Digital Assets Research at Cantor Fitzgerald, explained the company's protective capital structure.
Knoblauch detailed that MicroStrategy's debt consists primarily of unsecured convertible notes, which do not carry margin-call conditions and are not tied to Bitcoin's market price. He stated, "There's nothing out there that could force MicroStrategy to sell their Bitcoin." Because the debt is unsecured, lenders cannot require asset liquidation even during periods of extreme Bitcoin price volatility.
The research head also highlighted that the company's use of long-dated debt with low interest rates and distant maturity dates provides significant flexibility. This structure allows MicroStrategy to maintain its Bitcoin treasury strategy through market cycles without short-term liquidity stress, separating it from firms that use Bitcoin as collateral for loans.
MicroStrategy, chaired by Bitcoin advocate Michael Saylor, has built one of the world's largest corporate Bitcoin treasuries, holding 717,131 BTC worth approximately $48.49 billion as of the report. Despite the current Bitcoin price of $67,609 being below the company's average purchase cost of $76,027—resulting in an unrealized loss of over $6 billion—the firm's strategy remains intact.
Concurrently, Saylor shared an update to the "Bitcoin Tracker," using the phrase "orange century," which typically precedes an official reserve data announcement. This has fueled market expectations that MicroStrategy may announce an additional Bitcoin purchase in the coming week, continuing its dollar-cost averaging approach despite recent price declines and high share volatility.
