Bitcoin News Today: MSTR's Convertible Debt Flexibility Thwarts Bitcoin Liquidation, Analyst Notes

Michael Saylor's Strategy (MSTR) is unlikely to face Bitcoin liquidation during the next major crypto market downturn, according to a Cointelegraph report. In a recent X post, Woo argued that the company's debt structure—primarily convertible senior notes—provides flexibility to settle obligations through cash, common stock, or a combination of both, reducing the need to sell its Bitcoin holdings. For instance, to avoid selling Bitcoin to cover $1.01 billion in debt due in 2027, MSTR's stock would need to remain above $183.19, which corresponds to a Bitcoin price of roughly $91,502 and a 1x multiple net-asset-value (mNAV).

The company's financial resilience is further bolstered by its $64 billion Bitcoin holdings (641,205 BTC) and recent strategic moves. On Thursday, Strategy announced a new euro-denominated 10.00% Series A Perpetual Stream Preferred Stock (STRE), with 3.5 million shares priced at €100 ($114) each. The offering, managed by Barclays, Morgan Stanley, and other underwriters, aims to fund additional Bitcoin purchases and corporate operations. The preferred stock includes a 10% annual dividend and redemption clauses tied to market conditions, offering investors a hybrid security that aligns with MSTR's long-term Bitcoin strategy, according to a Benzinga article.

Recent earnings results underscore MSTR's financial strength. The company reported Q3 adjusted earnings per share (EPS) of $8.42, exceeding estimates, with operating income of $3.9 billion driven largely by unrealized gains on its Bitcoin holdings, according to Seeking Alpha. Shares of MSTR surged 7.6% to $273.68 following the earnings report, marking its largest daily gain since April 9, as noted in a Reuters report. As of October 26, 2025, Strategy held 640,808 bitcoins, valued at $70.9 billion, with an average cost basis of $74,032 per token, Seeking Alpha reported.

Despite optimism, risks persist. Woo warned that a "partial liquidation" could occur if Bitcoin fails to rally during the anticipated 2028 bull market. This scenario hinges on Bitcoin's performance relative to MSTR's debt obligations and stock price, which has fallen to a seven-month low of $246.99 amid broader crypto market volatility, as noted in the Cointelegraph report.

The company's recent stock offering and robust Bitcoin balance sheet signal confidence in its long-term strategy. However, investors must monitor macroeconomic factors, regulatory developments, and Bitcoin's price trajectory, which remain critical to MSTR's financial health.