Corporate Bitcoin Treasuries May Face Liquidations if Prices Drop
Corporate bitcoin treasuries are increasing buying pressure, but a significant price drop could trigger forced liquidations, according to Standard Chartered analyst Geoff Kendrick.
- 61 publicly listed companies hold a total of 673,897 bitcoin, representing 3.2% of the total supply.
- Michael Saylor's Strategy (MSTR) accounts for 580,955 tokens.
- Liquidations may occur if prices fall over 22% below average purchase prices.
- A historical example involves Core Scientific, which sold 7,202 bitcoins at $23,000 each during a market downturn.
- If bitcoin drops below $90,000, half of these corporate holdings could be underwater.