Analyst: Strategy still far from forced liquidation; comparing STRC depegging to UST event is a clear overreaction

Odaily Planet Daily News: Crypto analyst Murphy stated that Strategy currently does not face a preferred stock repayment crisis. According to Murphy, to breach Strategy's preferred stock level, Bitcoin would need to drop to $26,000; to breach the debt level, it would need to drop to $8,000.

Murphy pointed out that the similar product SATA remained above $99 this week, while STRC experienced depegging, indicating that the current market selling pressure is more targeted at Strategy itself rather than a design flaw in the related products. He believes this is more of a repricing of leverage and credit, along with a liquidity contraction triggered by cash reserve depletion and amplified signals from the first sale of tokens, rather than a liquidation crisis.

Murphy stated that Strategy is still quite far from forced liquidation. However, at the current price level, its "flywheel model" has temporarily stalled. The subsequent price trend of Bitcoin will determine whether this is a mid-cycle adjustment or the beginning of a deeper risk. He believes that comparing the STRC depegging to the UST depegging and LUNA collapse of the last cycle is a clear overreaction. If Bitcoin prices recover and equity ATM financing resumes, Strategy is expected to restore its cash reserves and restart its capital operation model.