Given the information above, Strategy’s BTC holdings remain firmly in profit and look to be a good move so far. However, with the Bitcoin price crashing below $100,000 this week, questions abound as to what happens if the Bitcoin price were to crash to Strategy’s average price.
If the Bitcoin price were to fall below $74,000, the holdings would simply go into a loss, i.e. the price is now lower than where it was bought. For the holdings to be liquidated, the company would have to sell off into the market, regardless of price, in order to pay back investors.
