Michael Saylor’s Bitcoin strategy has been in the spotlight since the recent BTC crash. There was speculation about what could happen. Sailor’s company, strategy (MSTR) and BTC holdings as the flagship cryptocurrency continues to crash.
Schiff Predicts Bankruptcy for Saylor’s Strategy Due to Bitcoin Crash
to X postfamous economist Peter Schiff Strategy’s entire business model is a scam. He went on to ask Saylor to discuss the proposal. He added that no matter what happens with Bitcoin, the strategy will eventually fail. Notably, MSTR’s mNAV has recently fallen below the value of its Bitcoin holdings, putting Saylor’s strategy at risk.
Saylor’s strategy has always benefited from trading at a premium to his Bitcoin holdings. However, with mNAV currently trading below 1, there are concerns about what could happen to the company if the Bitcoin bear market continues. last week, Arkham suggested Saylor and his company were offloading BTC. but, Sailor was quickly fired. This rumor has been stated to be untrue.
Saylor also revealed that Strategy purchased Bitcoin every day last week despite the BTC collapse. The company confirmed this in an announcement this week. $835 million purchase. This is the largest purchase since purchasing $2.46 billion worth of BTC in July. However, the company purchased these coins at an average price of $102,171, much higher than BTC’s current price.
This purchase resulted in a significant loss of Strategy’s Bitcoin supply. CryptoQuant Data It shows that 43% of Saylor’s company’s BTC holdings are making losses, while 57% are making profits. This is based on the average purchase price per purchase, not the total amount. Specifically, the average purchase amount for the company’s total BTC holdings is $74,433.
BTC could still fall below the strategy’s average purchase price
veteran merchant Peter Brandt predicted If Bitcoin falls below $50,000, Strategy’s BTC holdings could become bogged down. Brandt said this could test Saylor ‘seriously’ as BTC falls below the average purchase price. The merchant explained: fall below $50,000 This can occur when recent parabolic advance violations are similar to past events.
If Bitcoin falls below Strategy’s average purchase price, the company could be at risk of having to sell its holdings to repay its debt. cryptocurrency expert Dom Kwok argued. Saylor’s company will have to sell BTC to pay the interest. He added: finance company If mNAV falls below 1, you will not be able to operate, so you will have to sell your BTC or go bankrupt.
cryptocurrency expert Mana warned. The market will soon witness a strategy collapse. He claimed investors were pulling out while the company’s profits were bleeding. Therefore, he advised market participants to dump MSTR stock.
At the time of this writing, Bitcoin price is said to be trading around $91,400 over the past 24 hours. data From CoinMarketCap.
Featured image from Pixabay, chart from Tradingview.com
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