Analyst: Strategy Still Far from Forced Liquidation, Comparing STRC De-pegging to UST Event is a Clear Overreaction

Odaily Planet Daily News: Crypto analyst Murphy stated that Strategy is currently not facing a preferred stock solvency crisis. He believes that to break through Strategy's preferred stock tier, Bitcoin's price would need to drop to $26,000; to breach the debt tier, it would need to fall to $8,000.

Murphy pointed out that the similar product SATA remained above $99 this week, while STRC experienced de-pegging, indicating that the market sell-off pressure is more targeted at Strategy itself rather than a flaw in the related product design. He believes this is more of a repricing of leverage and credit, and a liquidity contraction triggered by cash reserve depletion and amplified signals from the first-ever sell-off, rather than a liquidation crisis.

Murphy stated that Strategy is still a long way from forced liquidation; it is merely that its "flywheel model" has temporarily stalled at the current price level. Future Bitcoin price trends will determine whether this is a half-time adjustment or the beginning of deeper risks. He believes that comparing STRC's de-pegging to UST's de-pegging and the LUNA crash in the last cycle is a clear overreaction. If Bitcoin's price recovers and equity ATM financing resumes, Strategy is expected to restore its cash reserves and restart its capital operation model.