Strategy won’t be forced to sell Bitcoin if stock drops, Bitwise CIO says
Bitwise CIO Matt Hougan asserts MicroStrategy will not be forced to sell Bitcoin even if its stock price falls below NAV.Summary
Bitwise Chief Investment Officer Matt Hougan stated that MicroStrategy (MSTR) will not be compelled to sell its substantial Bitcoin holdings if its stock price drops below its Net Asset Value (NAV). Hougan dismissed concerns that a stock price decline would force sales, pointing to Chairman Michael Saylor's strong commitment to Bitcoin and MSTR's financial structure. The company has no debt due until 2027 and sufficient cash reserves ($1.4 billion) to cover interest payments for the foreseeable future, which amount to about $800 million annually. Fears of a forced sale arose after the CEO mentioned offloading some BTC as a "last resort" if the market value slipped below the Bitcoin holdings' value. Hougan also downplayed the potential impact of MSTR facing exclusion from the MSCI index due to its large crypto holdings, noting that index changes historically have less impact than anticipated.
(Source：Cointelegraph)