Bitcoin is close to the MicroStrategy strategy cost price, preferred stocks STRK and STRF are considered safe-haven assets.

The tariff war has triggered global asset turmoil, with Bitcoin falling back to 76K, approaching the average purchase price of Strategy ( MicroStrategy ) at 67,458 USD, and liquidation concerns are rising again. Strategy stock MSTR has also faced dumping recently, down over 20% year-to-date, but its preferred stocks STRK and STRF have become value-preserving assets amid this wave of tariff tsunami due to their high dividend rates of 8% and 10%, and a liquidation price of 100 USD far above the issuance price.

Bitcoin is approaching the strategy cost price, but where is the liquidation bottom?

Strategy currently holds 528,185 Bitcoins, with an average cost of 67,458 USD/Bitcoin. Now that the Bitcoin price has reached around 76K, there is only 12% room left from its cost, reigniting discussions on whether Strategy could potentially face liquidation!

( MicroStrategy's strategy liquidation doubts resurface: How will the Bitcoin price fall affect this company? )

Strategy currently has a debt of 8.2 billion USD and preferred stock of 1.6 billion USD. Since the repayment priority of preferred stock is higher than that of common stock, it has a nature similar to that of bonds. If both are considered as corporate debt, it can be converted.

(Debt+Pref)/Market Cap: accounting for 16% of the stock market value

(Debt+Pref)/BTC NAV: The proportion of its held Bitcoin market value is 24%.

Bitcoin accounts for 63% of the company's market value.

Currently, its debt ratio is only 16%. It is premature to say that the decline in Bitcoin has caused the risk of "insolvency." In fact, Chain News analyzed its 2022 financial report, which indicated that there was a time when "shareholder equity" was negative. However, under the persistent efforts of founder Michael Saylor, the company managed to navigate through the bear market. Saylor holds 46.8% of the voting rights, making it nearly impossible for any shareholder resolution to pass without his decision.

The threshold for liquidation is now far below the market price of Bitcoin.

(8,224+1,615)*1,000,000/528,185=18,628 dollars/each Bitcoin

Note: It is assumed here that shareholder equity has completely lost value, and selling Bitcoin is necessary to fully compensate the creditor's losses.

Its stock price premium indicator mNAV (Enterprise Value÷Bitcoin NAV) is still as high as 1.82, indicating that investor interest remains strong.

( MicroStrategy MSTR becomes a new indicator for Bitcoin, mNAV premium ratio and tracking website introduction )

MSTR has fallen over 20% year to date, and preferred stocks have become a valuable asset.

MSTR has fallen over 20% so far this year, with a decline similar to Bitcoin.

Founder Michael Saylor remains optimistic, stating that "Bitcoin has no tariffs"! He refutes that the selling pressure on Bitcoin only comes from its constant sellability.

"Short-term trading of Bitcoin is like a risk asset, as it is the most liquid asset on Earth, best suited for selling and trading around the clock. During panic periods, traders will sell what they can sell rather than what they want to sell. This does not mean it has long-term relevance—just that it is always available."

The preferred stocks STRK and STRF issued are relatively resistant to falls, closing yesterday at 81.13 ( with an issuance price of 80 USD ) and 85.75 ( with an issuance price of 85 USD ). Due to their high dividend rates of 8% and 10%, and a liquidation price of 100 USD far exceeding the issuance price, they have also become a valuable asset amid this wave of tariff tsunamis.

( MicroStrategy Strategy new Bitcoin blueprint, STRF how to expand the bond market to allow retail investors to easily invest )

This article Bitcoin is close to MicroStrategy's strategy cost price, preferred stocks STRK and STRF are the earliest hedging assets appeared in Chain News ABMedia.