In a recent appearance on CNBC’s “Squawk Box,” Strategy CEO Michael Saylor addressed concerns regarding the company’s credit risk amidst a declining bitcoin market. As cryptocurrency values fluctuate, Saylor remains unfazed, asserting his plan to continue acquiring bitcoin on a quarterly basis. “If bitcoin falls 90% for the next four years, we’ll refinance the debt,” he stated confidently, indicating a willingness to “roll it forward” should prices plummet.
Saylor further emphasized his belief in the ongoing viability of banks to lend to digital asset firms, even in the face of significant market volatility. “Yeah, because the volatility of bitcoin is such that it’s always going to be a value,” he argued, assuring stakeholders of the firm’s stability despite fluctuating market conditions.
Bitcoin recently saw trading at approximately $68,970.45, reflecting a 9% decline over five days. The cryptocurrency’s value has seen a substantial drop, marking a 15% fall to around $60,062.00 on Thursday, which is its lowest point in roughly 16 months. At its lowest, bitcoin was sitting more than 50% below its all-time high, prompting many investors to reassess its utility in their portfolios.
Strategy’s substantial presence in the cryptocurrency market includes more than $8 billion in total debt, largely attributed to the issuance of convertible notes aimed at bolstering its bitcoin acquisitions. Despite the setbacks in bitcoin’s value, Saylor dismissed any speculation regarding the company selling its digital asset holdings, stating, “I expect we’ll be buying bitcoin every quarter forever.”
Currently, Strategy is the largest corporate holder of bitcoin, with 714,644 coins valued at about $49 billion. Saylor pointed out that the firm maintains two-and-a-half years’ worth of cash on its balance sheet to support dividends, reassuring investors about the company’s financial health. However, Strategy’s stock took a hit as bitcoin dipped below the $70,000 mark, falling about 2% on Tuesday and experiencing a decline of over 40% over the past three months.
