Michael Saylor announced that the company will not back down from its buying strategy despite the sharp fluctuations in Bitcoin (BTC). Saylor stated, “We will not sell Bitcoin, we will continue to buy it every quarter, forever.”
Speaking as the Bitcoin price fluctuated below $70,000, Saylor stated that the company had made approximately $90 million worth of new Bitcoin purchases. Despite market volatility, Saylor indicated they were maintaining their long-term perspective, describing Bitcoin as “digital capital.”
According to Saylor, Bitcoin is two to four times more volatile than traditional assets like gold, stocks, or real estate. However, he argued that this also means it has the potential to perform two to four times better.
“Volatility is not a flaw, it’s a characteristic,” said Saylor, adding that Bitcoin will form the basis of new financial instruments, especially “digital credit” products, in the coming years.
Saylor, recalling that Bitcoin reached its all-time high four months ago, said that those with a short-term perspective (less than four years) are traders, not investors. According to Saylor, Bitcoin performs 2-3 times better than alternative capital assets in a four-year perspective.
Saylor also touched upon the decline in the company’s shares. Strategy shares have fallen by approximately 60% in the past year. He stated that this is linked to Bitcoin’s downward trend over the last four months, explaining that the company is designed like “leveraged Bitcoin,” meaning it rises faster when Bitcoin rises and fluctuates more sharply when it falls.
One of the most debated topics in the market is whether Strategy will be forced to sell if the Bitcoin price falls further. Saylor described these concerns as “unfounded”.
Saylor stated that the company’s net leverage ratio is about half that of typical companies with investment-grade credit ratings, and that the balance sheet includes Bitcoin equivalent to 50 years’ worth of dividends and cash to cover 2.5 years’ worth of dividends and debt payments.
“Even if Bitcoin were to fall by 90% and stay at that level for four years, we would refinance the debt,” Saylor said, arguing that credit risk is “de minimis” (negligible).
Addressing the frequently cited “$60,000 miner cost floor” argument within the Bitcoin community, Saylor suggested that miners’ influence on price dynamics is now a third-tier factor. He claimed that the impact of major banks introducing Bitcoin-backed loan products and Wall Street giants issuing new Bitcoin funds would be ten times stronger than that of miners.
Saylor avoided making a clear price forecast for the next 12 months, saying that long-term performance was what truly mattered.
“I think Bitcoin will double or triple the performance of the S&P 500 in the next 4 to 8 years. That’s all we need to know.”
*This is not investment advice.
