MicroStrategy (Strategy) released its Q4 2025 earnings report and, along with it, disclosed an extreme downside scenario that would begin to strain its Bitcoin treasury model. The CEO’s remarks provided rare insight into how far the market could fall before the company’s capital structure comes under serious pressure. MicroStrategy Finally Reveals What Would Be Its Breaking Point as Bitcoin Price Drops During its latest earnings discussion, MicroStrategy CEO Phong Le said that a 90% decline in Bitcoin’s ...

Core Insights - Michael Burry warns that a decline in Bitcoin below $70,000 could lead to severe consequences, including forced selling and failures of crypto-related firms [1][7] - Burry identifies three critical price thresholds for Bitcoin: $70,000, $60,000, and $50,000, each representing increasing levels of risk for corporate holders and miners [1][6] Group 1: Price Thresholds and Risks - At $70,000, large corporate holders may face tighter financing conditions, making it harder to raise capital as investor confidence diminishes [2][3] - The $60,000 level represents a significant stress point, where the risk of reflexive selling increases, potentially leading to a "death spiral" for firms heavily invested in Bitcoin [4][5] - At $50,000, Bitcoin miners could face insolvency, leading to additional selling pressure as distressed operators may need to liquidate their holdings [6] Group 2: Market Dynamics - Falling Bitcoin prices can weaken balance sheets and erode market confidence, which in turn tightens financing conditions and increases the likelihood of selling [8] - The expectation of forced selling can destabilize the market, even if not all corporate holders are compelled to sell [5][7]