PANews reported on December 3rd that according to Cointelegraph, research released by capital consultant Jeff Walton showed that MicroStrategy can ignore the bear market price of Bitcoin plummeting to $20,000, and the company's Bitcoin assets will not be significantly affected. The study shows that although the price of Bitcoin may fall by 80%, MicroStrategy can still withstand this price crash. Although MicroStrategy's Bitcoin exposure is higher than ever before and the company is constantly buying more Bitcoin, analysis shows that even a long-term price correction will not cause significant problems for MicroStrategy and CEO Michael Saylor.
Walton calculated that MicroStrategy's assets would only be less than its liabilities if the price of Bitcoin fell to $18,826. The practice of adding Bitcoin risk to corporate balance sheets has been criticized. And 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, there is little logic in the argument against corporate adoption of Bitcoin.
