Only An Asteroid Can Sink MSTR’s Bitcoin Bet, CryptoQuant CEO Says
Overview
Ki Young Ju, the founder and CEO of CryptoQuant, has publicly challenged the narrative surrounding the potential liquidation of Strategy, formerly known as MicroStrategy. His remarks, made in a recent post, emphasize the company’s financial structure and shareholder dynamics, asserting that fears of bankruptcy are unfounded.
What Happened
In a post dated November 20, 2025, Ju addressed concerns regarding forced Bitcoin liquidations associated with Strategy. He argued that the bearish outlook misunderstands the company’s capital structure. Ju stated that the only scenario in which Strategy would face bankruptcy is if an asteroid were to hit Earth. He invited critics to provide evidence for claims regarding the potential liquidation of Michael Saylor, the company’s leadership figure.
Amidst a downturn in Bitcoin and other high-beta cryptocurrencies, speculation about Strategy’s debt obligations resurfaced. Ju countered these concerns by explaining that the company’s financial setup is not akin to a margin trader’s. He clarified that the failure of convertible notes to reach their conversion price does not equate to liquidation. Instead, it implies that the notes would be repaid in cash, which he described as a routine aspect of corporate finance.
Ju outlined various options for debt repayment, including refinancing, rolling into new notes, secured borrowing, or utilizing operating cash flow. He emphasized that if the equity value is below the conversion strike price at maturity, the convertible debt would revert to straight debt, rather than triggering a forced sale of Bitcoin.
Furthermore, Ju highlighted the importance of shareholder interests, arguing that Saylor would not sell Bitcoin unless there was a significant demand from shareholders. He warned that such a sale would jeopardize Strategy’s identity as a Bitcoin treasury company and could lead to negative repercussions for both the company and Bitcoin.
Strategy’s balance sheet supports Ju’s assertions, as the company reported holding 640,808 BTC as of October 30, 2025, with subsequent filings indicating an increase to approximately 649,870 BTC. This substantial Bitcoin treasury remains the primary asset, suggesting that any solvency issues would require a severe and prolonged decline in Bitcoin prices.
While Ju acknowledged that the stock price of Strategy is not immune to fluctuations, he dismissed the notion that the company would sell Bitcoin to maintain its stock value or avoid bankruptcy. He characterized such claims as “completely absurd,” asserting that even in a scenario where Bitcoin’s price drops significantly, the company would only face a debt restructuring rather than liquidation.
Ju also addressed the obligations related to preferred shares, noting that dividend payments have been consistently met and can be managed through new share issuance. He described the potential use of Bitcoin as collateral as a last resort, as this could introduce margin risk.
In summary, Ju’s arguments draw a distinct line between market volatility and insolvency, asserting that while Strategy may exhibit price movements similar to leveraged Bitcoin, its debt structure does not necessitate forced Bitcoin sales.
Impact on the crypto market
- Ju’s defense of Strategy could bolster investor confidence in the company’s long-term viability.
- The emphasis on shareholder interests may influence how investors perceive the company’s commitment to its Bitcoin holdings.
- The conversation around convertible debt and corporate finance could lead to a better understanding among investors of how such structures operate in the crypto space.
- Ju’s remarks may help mitigate fears of forced liquidations, potentially stabilizing Bitcoin’s market perception.
- The clarification on the relationship between market conditions and insolvency may prompt investors to reassess their strategies regarding companies heavily invested in cryptocurrencies.
Updated: 11/21/2025, 4:30:58 PM
