CryptoQuant CEO Ki Young Ju has dismissed fears of forced Bitcoin liquidation at Strategy, formerly MicroStrategy. He argues that the bearish narrative misunderstands the company’s financial setup. Ju firmly believes the firm is not structured like a typical margin trader.
In a recent social media post, Ju stated that Strategy would only face bankruptcy if an asteroid struck Earth. He challenged critics to provide evidence before claiming Michael Saylor would be liquidated. This came as Bitcoin prices dipped, reviving old concerns about the company’s debt.
Ju’s main point is that convertible notes missing their conversion price does not mean liquidation. It simply means the debt is repaid in cash. This is a normal part of corporate debt maturity, not a trigger for bankruptcy.
He explained that repayment options include refinancing, new notes, or using operating cash flow. These are standard corporate finance tools. The convertible debt acts like straight debt if equity is below the strike price at maturity.
Governance and identity play a key role in Ju’s argument. He emphasized that Saylor would never sell Bitcoin unless shareholders demanded it. Selling even one Bitcoin could destroy Strategy’s identity as a Bitcoin treasury company.
Such a move might trigger a death spiral for both Bitcoin and MSTR. The shareholder base invested with the Bitcoin mandate in mind. A voluntary sale is highly unlikely without a major shift in investor preferences.
Balance-sheet data supports Ju’s confidence. Strategy held 640,808 Bitcoin as of late October 2025, acquired for billions. Recent filings show additions pushing holdings to nearly 650,000 Bitcoin.
The Bitcoin treasury is the dominant asset on the balance sheet. Solvency issues would require an extreme, prolonged collapse in Bitcoin’s price. A typical market downturn would not force sales.
Ju did not claim the stock is without risk. He acknowledged that MSTR’s stock price could fluctuate. However, he called the idea of imminent bankruptcy absurd.
Even if Bitcoin fell to $10,000, Ju believes Strategy would only need debt restructuring. Preferred share dividends have been met and can be covered by issuing new shares. This might dilute equity but avoids liquidation.
Using Bitcoin as collateral would be a last resort. That would introduce real margin risk, which the company avoids. Ju’s analysis separates volatility from insolvency clearly.
The liquidation narrative is a myth, in his view. It would take a catastrophic event to change that. Otherwise, Strategy’s Bitcoin bet remains secure.
Ju’s rebuttal highlights the strength of Strategy’s position. The company is built to withstand market swings. Only an unforeseen disaster could alter its course.