the Strategy has this name for a reason, they planned and will become a grand company in the future, especially when bitcoin is scarce in the market
Ualifi Araújo
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Bullish
🚨 Saylor WILL NEVER BE LIQUIDATED !!!
Many people are saying that Saylor's Strategy may be "forced to sell its Bitcoin" with the recent market drop, but that will not happen at all.
The Strategy does not operate with leverage like a futures position #BTC , therefore, there is no automatic liquidation if the price falls. The debt consists of unsecured convertible notes, with no margin call triggers based on drops in the price of Bitcoin, so there is no risk of forced liquidation with a drop of 3% or 30%.
An incredibly prolonged bear market would be necessary for the Strategy to be pressured to sell any BTC, something far beyond a normal correction or a normal bear market.
The stress test indicates that the company's structure can withstand at least another 2 years of PERSISTENT bear market without needing to liquidate any Bitcoin, and remember that there are various strategies that can be adopted to prolong this time even further.
It is important to remember that the debt can also be settled with equity or a combination of instruments, which further reduces the risk of selling BTC.
It is natural for people to be afraid, but do not take panic actions, never!
Disclaimer: Includes third-party opinions. No advice. Binance AI may be used without guarantee.See T&Cs.