Michael Saylor has insisted that Strategy was built to withstand extreme market declines. He said the treasury firm was built to survive up to 80-90% of a Bitcoin crash.
Saylor Describes Strategy’s Approach as “Indestructible”
Speaking in an interview recently, he cited Strategy’s balance sheet and long-term orientation as the reasons that will see it through the harshest of market conditions.
“The company can take an 80% to 90% decline and continue operating without disruption,” Michael Saylor asserted.
He described the firm’s leverage profile as being extremely robust. He also said that the structure of the firm makes its system resilient against large shocks that may happen in the crypto economy.
This comes after Saylor countered claims that the firm had started selling part of its Bitcoin treasury. The rumors gained momentum when the crypto market began declining.
As Saylor says, the company isn’t selling and is still committed to its accumulation plan. In fact, Strategy still bought more BTC for its treasury on Monday. Although the firm’s mNAV multiple has dropped to 1.11x, he explained that this change is due to the market changes.
Michael Saylor also said that he is not worried about big investors causing too much ups and downs in the market. He explained that when his company started buying Bitcoin in 2020, its annual volatility was about 80%. Now, he estimates that it has dropped to around 50% as the market has matured.
The founder predicts that volatility will keep falling at a rate of about five percentage points every few years. He said this would play out until Bitcoin trades at around 1.5x the volatility of the S&P 500.
Saylor Rejects the Four-Year Cycle Narrative
During the interview, Michael Saylor again distanced himself from the halving cycle. He reasoned that they no longer define the price movements in the current market. Saylor noted that the next halving eliminates about 225 BTC daily supply. He mentioned that this amount is nothing compared to the current supply.
Long-term, Saylor still forecasts the value of Bitcoin to increase at a rate of about 30% annually for the next twenty years. This is what supports his belief that the firm’s Strategy can thrive even when an 80–90% Bitcoin crash happens in the near term.
Meanwhile, Peter Brandt warned that Bitcoin could fall to $50,000 if it continues this cycle. As such, it could test the firm’s average purchase price. He had even said the firm could go underwater if BTC followed the 1977 Soybean crash pattern.
Source: https://coingape.com/michael-saylor-calls-strategy-indestructible-says-it-can-survive-80-90-bitcoin-crash/
