Strategy Under Pressure: Analyst Kaleo Warns 50,000 BTC Could Be Sold by 2028
Strategy, formerly known as MicroStrategy, has established itself as the largest corporate holder of Bitcoin in the world. With an impressive reserve of nearly 500,000 BTC accumulated over the years, the company led by Michael Saylor has become a symbol of institutional Bitcoin adoption and an unwavering bull for the digital asset. Its bold strategy of using debt to finance its Bitcoin acquisitions has been hailed by supporters as a stroke of genius and criticized by detractors as excessive risk-taking. Today, that strategy is under pressure, and voices are rising to warn of a potentially devastating scenario: the largest corporate buyer of Bitcoin could be forced to become a seller. Analyst Kaleo, followed by over 700,000 people on social media, recently issued a stark warning regarding Strategy’s situation. According to Kaleo, the company’s leverage strategy, while “brilliant on the way up,” could turn into a “disaster on the way down.” At the heart of this concern is the financial instrument STRC, a perpetual preferred stock issued by Strategy. Kaleo’s analysis suggests that if market conditions continue to deteriorate, the company could be forced to sell up to 50,000 BTC by 2028 to meet its obligations.
