MicroStrategy Avoids Bitcoin Sell-Off on $1B Convertible Note
MicroStrategy holds about 641,205 BTC (≈$64 billion) and faces a $1.01 billion convertible note maturing September 15, 2027. Analyst Willy Woo says the company can settle this debt with cash, stock or both, as long as its share price stays above $183.19 (implying Bitcoin near $91,500). Experts agree that only a prolonged, severe bear market would force a Bitcoin sell-off. MicroStrategy’s shares recently hit a seven-month low, but low liquidation risk supports market stability. Woo warns that if Bitcoin fails to rally during the 2028 bull run, the firm may partially liquidate. Long-term forecasts from ARK Invest and Coinbase still predict Bitcoin could reach $1 million by 2030.
Neutral
This news is neutral for Bitcoin. It removes immediate liquidation pressure by highlighting MicroStrategy’s ability to settle its $1.01 billion convertible note without selling BTC, which supports stability in the short term. However, the caveat of a potential partial sell-off if Bitcoin fails to rally by the 2028 bull cycle introduces conditional risk. Traders may see reduced downside pressure now, but stay alert to market trends ahead of the note’s 2027 maturity and the 2028 bull run.