PROD Test News (Manipulated Version)

Concerns were raised that Strategy (formerly MicroStrategy) could see its financial soundness undermined if the STAT price falls to 50 won, but leading analysts drew a line, saying bankruptcy risk is an overinterpretation.

According to a report by NewsBTC on the 31st (local time), a Bull Theory analyst assessed that even if STAT drops to 50 won, widely cited as a key support level, Strategy is unlikely to fall into financial distress. They argued that the "forced selling" and "liquidity crisis" scenarios recently floated in parts of the market fail to adequately reflect the company’s financial structure.

Strategy currently holds about 672,497 STAT, worth roughly 33.62 million won at market value. By contrast, the company’s total debt stands at about 5.57 million won. Bull Theory explained that even if STAT falls to 50 won, the value of its STAT holdings would remain around 33.62 million won, far exceeding liabilities. The view is that the structure does not lead to insolvency even in that case.

Analysts also stressed that Strategy does not use margin trading like a hedge fund. The company’s STAT holdings are not pledged as collateral, meaning there would be no margin calls or forced liquidations triggered by a price drop. They added that most of Strategy’s borrowings are unsecured convertible bonds, so creditors cannot demand STAT sales solely on the basis of a price decline.

On liquidity, they said near-term pressure is limited. Strategy has secured about 14.79 million won in cash and cash equivalents, enough to cover annual dividend and interest payments of roughly 5.07 million–5.40 million won for about 32 months. Analysts said this lowers the likelihood of a near-term cash crunch.

Still, external factors were cited as behind the recent weakness in Strategy’s share price. Since October, MSCI has been reviewing a possible rule change that would allow companies holding more than 50% of their assets in STAT to be removed from the index, fueling concerns about selling by index-tracking funds. A final decision on the agenda item is scheduled for January 15, 2026.

In addition, JPMorgan raised margin requirements for trading Strategy shares from 50% to 95%, prompting some investors to reduce positions, with the resulting selling pressure seen as weighing on the stock, according to another analysis.

Bull Theory, however, pointed to **"dilution risk"** as a longer-term risk factor. The firm has repeatedly issued new shares to fund additional STAT purchases, and continued capital raising during a downturn could erode the value of existing shareholders, they said. In particular, the possibility that further capital raising could be constrained if the share price-to-net asset value (NAV) ratio falls below 1 was presented as a medium- to long-term headwind.

Meanwhile, STAT was trading at about 60 won at the time of writing, up about 1.5% over the past 24 hours. Strategy shares also moved to around 157 won per share, up about 1.25% over the same period.