Strategy Inc. (NASDAQ:MSTR) may not be having the best of times, but cryptocurrency punters still view the prospect of the Bitcoin (CRYPTO: BTC) hoarding giant going bankrupt as unlikely.
Is Strategy Safe?
Traders on Polygon (CRYPTO: POL)-based Polymarket assigned a 10% chance to Strategy declaring bankruptcy in 2026, down from 12% at the beginning of the year.
The bet has seen limited participation as of this writing, attracting slightly more than $162,000 in wagers.
The State Of Saylor’s Strategy
Concerns about the Strategy’s financial strength rose after it disclosed Bitcoin sales last week, undermining the “never sell” thesis that bullish investors had counted on.
The sale triggered instant panic, with Bitcoin tumbling below $60,000 to hit its lowest level since October 2024. The company’s shares plunged 40% over the week, and unrealized losses on its BTC holdings have ballooned to a record $12 billion.
Strategy Chair Michael Saylor has defended the company’s model, claiming in November that as long as Bitcoin increases by 1.25% annually, Strategy can maintain its dividend payments on its preferred stock indefinitely and boost shareholder value.
As of this writing, Strategy’s Bitcoin reserves are valued at nearly $52 billion, enough to cover 30 months of its dividend and interest obligations. The firm also holds $1 billion in cash reserves, and there are no major debt maturities until 2028.
Critics Aren’t Convinced
Economist Peter Schiff, meanwhile, predicted doomsday for the Bitcoin treasury company, highlighting a major problem with its capital allocation model.
Grayscale Head of Research Zach Pandl said last week that the firm’s levered business model “is under pressure” and creating problems for the BTC market as a whole.
Price Action: At the time of writing, BTC was exchanging hands at $61,429.92, down 2.24% over the last 24 hours, according to data from Benzinga Pro.
Strategy shares fell 0.36% in after-hours trading after closing 8% lower at $117.02 during Tuesday’s regular trading session. Year-to-date, the stock has plummeted 23%.
Benzinga’s Edge Stock Rankings indicate that MSTR has underperformed with a weaker price trend across short-, medium-, and long-term timeframes.
Photo: PJ McDonnell / Shutterstock.com
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