Michael Saylor Says Strategy Won’t Sell Bitcoin Despite Unrealized Loss, Will Keep Buying Every Quarter

Strategy executive chairman Michael Saylor has affirmed that the firm will not stop buying Bitcoin despite the prevailing volatility and unrealized losses on the company’s investment. He dismissed arguments that declining prices will force the company to liquidate its holdings.

Michael Saylor Affirms Strategy Will Not Sell

In an interview with CNBC, the Strategy co-founder said they will not sell their BTC holdings, despite speculation that market conditions may force the company to do so. He noted that Strategy considers its Bitcoin purchase as a long-term decision and not a short-term one.

Michael Saylor maintained that the credit risk associated with Strategy is very low, even in extreme circumstances. Instead, he claimed that Bitcoin would need to drop about 90% and remain down for years before refinancing would become challenging. He insisted that, in such a case, the company would still be able to roll forward its debt obligations. This echoes Strategy CEO Phong Le’s recent statement that Bitcoin would have to drop to $8,000 and remain there through 2032 for them to face liquidation risks.

Meanwhile, the Strategy co-founder noted that his company owns decades of dividends in Bitcoin. This huge reserve will give it a great financial buffer. With this, he feels that there is no cause to worry about forced liquidation as being exaggerated by short-term traders.

Michael Saylor also addressed speculation about Strategy’s financial situation. He claimed that the company has two and a half years of cash reserves to make dividend and debt payments. He added that the net leverage ratio of Strategy is one-half of an average investment-grade company.

Strategy Will Keep Buying Bitcoin

The executive chairman also clarified that Strategy’s Bitcoin accumulation plans have not changed. He said the company has raised billions in capital to further accumulate Bitcoin. “We’re not going to be selling. We are going to be buying bitcoin, Michael Saylor said.

He further indicated that Strategy will buy Bitcoin each quarter going forward. On Monday, Strategy declared another weekly Bitcoin buy of 1,142 BTC between February 2 and 8. According to Saylor, volatility is a characteristic of the asset. Also, he remarked that Bitcoin provides two to three times better returns than traditional assets like gold, equities, and real estate over a multi-year timeframe.

The company’s commitment to keep buying more Bitcoin despite the fact that it is facing an unrealized loss of $5.1 billion on its BTC holdings. This follows BTC’s crash below Strategy’s average buy price of $76,056 for its Bitcoin investment.

Saylor Comments On Market Volatility

Michael Saylor also explained that a recent volatility in the shares of Strategy was a result of a market pullback of Bitcoin. The Strategy co-founder said the last four months had been an unprecedented drawdown for MSTR stock, but noted that it recently posted a 25% gain in a day.

He argued that Strategy’s stock is more liquid on a market cap basis than any of the Mag 7 stocks by 2.34 times. He also indicated that open interest in MSTR options is presently the highest when compared with other top U.S. equities.

There is also ongoing downside momentum in the company’s stock due to the crash in BTC. MSTR stock has dropped to $134.93, down 2.38% over the last day, according to TradingView data.

Another point raised during the interview was that Bitcoin has a structural floor price of about $60,000 due to the cost of production for miners. Michael Saylor downplayed this argument. He said that increasing the presence of large banks and institutional credit markets will cause a much more significant impact on the movement of BTC’s price.

Saylor refused to give a 12-month prediction on the price of Bitcoin. Instead, he predicts that Bitcoin would perform two to three times better compared to the S&P 500 in the next four to eight years.