The liquidation risk is low because he has paid off all the debt he owed. All the new debt being issued are converts, meaning it is paid off in equity.

Once the converts mature, new shares are issued, so the risk isn’t one of liquidation, but rather dilution.

The only real risk is that the price of MSTR goes down, there isn’t a real risk that he becomes a forced seller of bitcoin, unless there is some operational cost that can’t be covered but the overhead is ridiculously low for the values he’s managing.

Basically all of the risk is on the individuals buying the converts as the coupon is 0 and the reward is equity.