Michael Saylor remains steadfast in his commitment to Bitcoin, even as the cryptocurrency experienced a notable dip below $62,000 recently, alongside significant paper losses for his company, Strategy (MSTR). A video from May 2025 went viral just as Bitcoin lost half its value from an October peak of over $126,000. In this clip, Saylor confidently asserted, “If people in the rest of the world knew what I know […] and they agreed with me, Bitcoin would go to $10 million tomorrow,” highlighting his unwavering belief in Bitcoin’s potential.
The resurgence of this video is particularly timely for Strategy, which reported the purchase of 855 BTC for $75.3 million at an average of $87,974 per coin. With Bitcoin currently hovering around $69,000, these recent acquisitions are already underwater. As of now, Strategy holds a total of 713,502 BTC, totaling roughly $54.3 billion at an average cost of $76,052 per coin. These assets are now valued at around $50 billion, resulting in unrealized losses exceeding $4 billion. In contrast, just a few months ago in October, the company enjoyed paper gains nearing $33 billion.
The declines haven’t spared MSTR stock either, which has plummeted approximately 12% year-to-date, 44% over the last three months, and 60% in the past year. The stock is also down over 70% from its peak of $457.22 in July 2025. In the fourth quarter of 2025, Strategy reported a staggering net loss of $12.4 billion, or $42.93 per diluted share, compared to $670.8 million the previous year. Additionally, the operating loss swelled to $17.4 billion, a significant leap from the $1 billion recorded the year before.
Despite the severe downturn, Saylor frames Bitcoin’s volatility as advantageous rather than detrimental. In the same viral video, he noted, “Volatility was a gift to the faithful,” suggesting that it deters less committed investors and allows younger individuals to accumulate Bitcoin over time. He reiterated that he has no intention of selling his Bitcoin holdings and even indicated that Strategy continued to buy amid the recent market downturn.
However, many are questioning whether the company might need to liquidate some of its Bitcoin if stock prices fall below the value of its underlying assets. CEO Phong Le acknowledged that this could become a necessity but emphasized that any selling would only be considered if the company’s net asset value (NAV) dropped below 1. Currently, despite a significant decline, the NAV stands at 1.1, indicating a slight premium.
The company also maintains a $2.25 billion cash reserve, which is deemed sufficient for covering dividend payments for the next two and a half years without having to sell Bitcoin. With the first major debt maturity not occurring until September 2028 and the company’s convertible debt being unsecured, they are positioned to withstand further market fluctuations, at least for the time being.
Saylor’s bold statements about Bitcoin have drawn criticism and skepticism on social media, with some users ridiculing the idea that widespread agreement about an asset’s value could skyrocket its worth to unimaginable levels. Detractors also point to increased leverage and centralization risks associated with Strategy’s debt-laden Bitcoin acquisition strategy, especially as market prices dip below its average cost of acquisition.
The company’s aggressive stance on Bitcoin places it in the midst of high-stakes financial maneuvering. It has encountered difficulties in gaining inclusion in the S&P 500, a move that would enhance its institutional credibility and potentially attract passive inflows. Regulatory challenges loom, as MSCI proposed classifying companies like Strategy—whose balance sheets are heavily weighted towards digital assets—as non-operating entities. Saylor has strongly opposed this notion, asserting that the company is an active business leveraging Bitcoin strategically.
Despite these challenges, Strategy managed to deliver a 22.8% yield on Bitcoin in 2025, surpassing its lower-end target. The company’s revenue reached $123 million in the fourth quarter, with a gross profit of $81.3 million and cash reserves rising to $2.3 billion from just $38.1 million the year prior.
As it stands, Saylor shows no signs of wavering in his Bitcoin-focused strategy, despite escalating criticisms and mounting losses. The company has previously weathered significant downturns, such as during the crypto winter of 2022 when Bitcoin remained below its average purchase price for 16 months. CFO Andrew Kang stated during a recent earnings call that their long-term vision remains unchanged: “We are committed to increasing Bitcoin per share and building durable shareholder value over the long term.”
Whether this unwavering conviction will pay off or become a cautionary tale is yet to be seen, contingent on Bitcoin’s performance in the coming years. Analysts maintain a “Strong Buy” consensus on MSTR stock, with 13 out of 16 recommending it, suggesting a potential upside of approximately 215% from current prices.
