MSTR Stock Decline Raises Concerns Over Debt Repayment Strategy

NEW YORK, NY — Strategy (MSTR) is facing increased scrutiny as its stock continues to decline. Market experts are questioning the company’s ability to repay approximately $1.01 billion in debt due on September 15, 2027.

Some analysts suggest that MSTR may need to sell its Bitcoin holdings to cover this debt during the next downturn in the cryptocurrency market. However, market expert Willy Woo believes such a situation is unlikely. According to Woo, MSTR needs to maintain a stock price above $183.19 to avoid having to liquidate Bitcoin, which is currently worth about $91,502, based on a multiple net asset value (mNAV) of 1.

“Liquidation is not expected in the next bear market unless Bitcoin fails to rally during the anticipated 2028 bull cycle,” Woo stated. He explained that a partial liquidation could occur if Bitcoin does not show significant growth leading up to that period.

In similar sentiments, Bitcoin analyst known as The Bitcoin Therapist asserted that a drastic performance drop in Bitcoin would be required for MSTR to liquidate its holdings. “It would take a sustained bear market for that to happen,” he noted.

Currently, MSTR holds about 641,205 BTC, valued at approximately $64 billion. This includes a recent purchase made earlier this week. Additionally, MSTR is proposing an initial public offering of 3.5 million shares of its Series A Perpetual Stream Preferred Stock, which offers a 10% annual rate in cumulative dividends.

Despite reporting strong Q3 results and aspirations to enter the S&P 500, MSTR’s stock price dropped another 7% on November 4, ending trading at around $246. Analysts suggest that if the current price trends continue, MSTR could see its stock fall to about $100.

“Strategy’s stock seems to follow a previous fractal pattern indicative of another drop,” said crypto analyst Ali Martinez. “If this pattern holds true, then $100 might be the next target.”

This fluctuation in stock price and projected debt challenges highlight ongoing market volatility and the pressing concerns for MSTR as it navigates its financial obligations in the crypto landscape.