Wall Street supports Strategy: Bitcoin will only fall 86% if something goes wrong, those concerns are just noise.

[Chain News] Bitcoin pulled back, and doubts about the Strategy have arisen again. However, a certain brokerage on Wall Street recently released a report, directly countering this—saying that these concerns are purely noise.

Analyst Palmer pointed out in the report: Critics simply do not understand how Strategy works, mistaking short-term fluctuations for a repayment crisis, which are two entirely different matters. This company holds 649,870 Bitcoin (, valued at $55.8 billion ) at current prices. Sounds exaggerated? But look at their debt structure—$8.2 billion in ultra-low-interest convertible bonds, plus $7.6 billion in perpetual preferred shares. The latter is key; this financing tool allows them to leverage Bitcoin positions at an extremely low cost, something other digital asset companies simply cannot replicate.

Where is the “liquidation line” that the market is always worried about? A report calculated that Bitcoin would have to plummet 86%, crashing down to $12,700 and remain stagnant for Strategy to potentially encounter issues. Given the current market dominated by institutional funds, the probability of such an extreme situation is needless to say very low.

Palmer maintains a buy rating, with a target price set at $705, provided that Bitcoin can reach $225,000 by 2026. As for the recent pullback? He believes it is not worth changing his judgment.