On December 3, PANews reported that research released by capital advisor Jeff Walton shows that MicroStrategy can ignore the issue of Bitcoin's bear market price plummeting to $20,000, as the company's Bitcoin assets will not be significantly affected. The study indicates that although Bitcoin's price may drop by 80%, MicroStrategy would still be able to withstand this price collapse. Despite MicroStrategy's Bitcoin exposure being higher than ever and the company continually purchasing more Bitcoin, analysis suggests that even a long-term price correction would not pose significant problems for MicroStrategy and CEO Michael Saylor.
Walton calculates that only when the Bitcoin price drops to $18,826 will MicroStrategy's assets fall below its liabilities. The practice of adding Bitcoin risk to the company's balance sheet has faced considerable criticism. Moreover, Bitcoin has indeed experienced an 80% retracement before. For example, between November 2021 and November 2022, BTC/USD fell from $69,000 to a low of $15,600. However, for Walton, the arguments against companies adopting Bitcoin are almost devoid of logic.
