The recent declines in Bitcoin have negatively impacted institutional investors as well as retail investors. At this point, the most talked-about name was Strategy, the biggest institutional bull. Accordingly, as the BTC price approached Strategy's cost base of $74,000, allegations of Strategy selling BTC increased. While Michael Saylor firmly denied allegations that Strategy sold BTC, he stated that the company could withstand even larger declines. The final comment on this point came from Tiger Research. Asia-based Web3 research firm Tiger Research said the Strategy could withstand a BTC drop to $23,000. According to the report, the Strategy can hold out until Bitcoin's price falls to an equilibrium point of $23,000. For BTC to reach this level, it would mean dropping more than 70% from its current price. Tiger Research noted that Strategy maintains a relatively stable foundation through a diversified financing structure, including preferred stock and convertible bonds, in response to the news. While the $23,000 floor provides short-term comfort, Tiger Research has highlighted a critical danger in the long term. Analysts underlined that the real test is in 2028, noting that this is when call options on a large volume of Strategy’s convertible bonds will be concentrated. Accordingly, if market sentiment deteriorates and the Bitcoin price approaches the Strategy's bankruptcy threshold, investors can exercise these options to request early repayment. In this worst-case scenario, Strategy would need to immediately raise up to $6.4 billion in cash, which could force the company to liquidate a BTC volume equivalent to 20-30% of its global daily spot transactions, potentially shocking the market. “Therefore, 2028 will not be an ordinary date. It will be a potential turning point that could determine the fate of the Strategy and significantly increase volatility for every Bitcoin investor,” the analysts wrote in the report. *This is not investment advice. Continue Reading: Analyst: "Michael Saylor Can Hold Bitcoin (BTC) Even If Price Drops to This Level! But The Real Test Will Come in 2028!"
