On-Chain Analytics Firm Says Strategy Faces No Liquidation Risk Despite 10% Bitcoin Plunge

▲ Michael Saylor, Strategy (MSTR) / ChatGPT-generated image

Bitcoin (BTC) has plunged more than 10%, spreading fear across the market, but Strategy, which holds a massive amount of Bitcoin, appears to remain very secure from liquidation risk.

According to crypto-focused media outlet U.Today on February 21 (local time), on-chain analytics platform Arkham reported that Strategy’s Bitcoin position is facing little threat of liquidation despite current market volatility. Arkham’s data indicates that the collateral value backing the loans Strategy secured to purchase Bitcoin remains sufficient, providing ample capacity to withstand further price declines.

Strategy has consistently accumulated Bitcoin using funds raised through convertible bond issuances and other financing methods. Led by Chairman Michael Saylor, this acquisition strategy focuses on lowering the average purchase price while strengthening the company’s long-term holding capacity. Arkham estimates that Strategy holds more than 190,000 BTC, a significant portion of which is tied to loans, but notes that the liquidation levels are set far below what the market has feared.

In the digital asset market, concerns had been raised that a drop in Bitcoin’s price could trigger a large-scale sell-off of Strategy’s holdings. However, Arkham’s latest analysis appears to ease such anxieties. Backed by steady cash flow and the ability to raise additional capital, Strategy has treated Bitcoin price declines as opportunities for further accumulation. This approach has served as a confidence indicator for institutional investors considering Bitcoin investments. Strategy’s Bitcoin holding strategy has evolved beyond a simple investment into a core principle of the company’s asset management.

Economic experts note that the financial structure built by Strategy is designed to withstand sharp fluctuations in Bitcoin’s price. Saylor has repeatedly described Bitcoin as “the safest and most powerful digital asset,” emphasizing that he will not be swayed by short-term price volatility. Strategy’s solid position is playing a key supporting role as Bitcoin advances toward becoming a central asset within the mainstream financial system.

Disclaimer: This article is for investment reference only, and no responsibility is assumed for any investment losses resulting from reliance on it. The content should be interpreted solely for informational purposes.