Market commentator Fred Krueger supported MicroStrategy’s Bitcoin plan, saying its mix of debt and MSTR stock remains steady despite price swings.
His remarks helped ease fears about possible liquidation faced by Bitcoin-linked treasury firms.
Why the Strategy (MSTR) Bitcoin Model Stands Firm?
In a recent post on X, Macro analyst Fred Krueger said MicroStrategy’s (MSTR) plan to grow its Bitcoin holdings is still strong.
He explained that if he were in Michael Saylor’s position, he would follow the same steps.
The company can sell shares when prices rise above its trading average, borrow about 40% of its asset value through special structures, and use that to buy more Bitcoin.
In addition, Krueger noted that this plan favors long-term investors who believe in Bitcoin’s growth.
He said short-term traders who watch daily price changes might not like the idea.
However, the company’s biggest shareholder, Saylor, is acting in his own long-term interest.
According to him, MicroStrategy’s debt level is modest and flexible. Payments on its financial structures can be delayed when needed, and the firm can raise more funds or sell Bitcoin if the market turns.
He also said there are no strict rules that force immediate repayments, which gives the MSTR stock more breathing room.
Meanwhile, that flexibility, he added, helps MicroStrategy manage risks better than many other Bitcoin-focused firms.
The model may not appeal to everyone, but it continues to attract those who view Bitcoin as a long-term asset rather than a short-term trade.
Liquidation Fears Among Bitcoin Treasury Firms
In a separate update, concerns about Bitcoin treasury companies grew after analyst Kashyap Sriram commented on Metaplanet, another firm with large Bitcoin holdings.
Metaplanet owns 30,823 Bitcoins at an average cost of $108,000 each. With Bitcoin trading around $100,000, the company’s position is now about 5% lower in value.
Instead of selling to cut losses, Metaplanet is taking on $100 million in debt to buy more Bitcoin and reduce its overall cost per coin.
This move sparked mixed reactions. Some analysts compared it to the risky behavior seen during the NFT bubble in 2022.
Others wondered what would happen if Bitcoin’s price drops further, warning that companies heavily tied to Bitcoin might face margin calls.
Notably, Krueger, however, argued that MicroStrategy’s (MSTR) situation is different. He said the company’s structure allows it to adjust without rushing into panic sales.
He believes the balance between its Bitcoin holdings and its capital base gives it a safer position than other firms trying to copy the same model.
MSTR Stock Shows Support Despite Market Swings
MicroStrategy’s MSTR stock has faced some pressure, but analysts say it is holding a key support zone.
The stock closed at $237.20, down 6.98% for the day, and fell another 3.77% in pre-market trading to $228.25.
Market data shows strong support near $230, which matches its 2025 low and the 100-week moving average.
Analysts describe the current drop as a normal pullback, not a sign of collapse. Many say the MSTR stock could recover if Bitcoin remains above $100,000.
They point to possible targets at $460 and $544, which mark its highs from 2025 and 2024.
Several research firms have raised their price outlook for MSTR. Some now see the stock reaching up to $705.
This growing optimism shows continued belief in MicroStrategy’s approach of combining Bitcoin investment with traditional stock ownership.
While the short-term picture remains uncertain, many experts believe the MSTR stock outlook could stay positive as long as Bitcoin prices remain stable or move higher.
For now, MicroStrategy’s plan appears steady, backed by patient investors and a flexible balance sheet.