Bernstein: MicroStrategy Will Solely Be Beneath Stress to Liquidate Its Bitcoin Holdings within the Face of Excessive Costs

MicroStrategy (MSTR) is below stress to liquidate its Bitcoin holdings because of its long-term debt-raising plan, Bernstein stated in a observe.

However solely within the occasion of an excessive value correction, particularly across the mid-2025 debt maturity.

Rising Bitcoin costs imply MicroStrategy has a stronger steadiness sheet, a better inventory value and simpler debt repayments with out having to promote its cryptocurrency holdings, the report stated.

Moreover, sturdy bitcoin costs and a better inventory value permit the corporate to boost new debt or fairness and redeem present convertible notes.

Conversely, if Bitcoin plummets, reaching a completely depressed value, the worth of MicroStrategy’s cryptocurrency holdings can not cowl debt and sure covenants after June 2025, and the company construction will probably be below stress from the prepayment clause.