Michael Saylor provided a robust defense of his company’s bitcoin-buying strategy during an appearance on CNBC’s Squawk Box. He addressed apprehensions regarding the possibility of being compelled to liquidate bitcoin holdings amidst a prolonged market downturn. Saylor firmly stated, “We’re not going to be selling; we’re going to be buying bitcoin,” emphasizing a commitment to regular acquisitions. He expressed confidence in continuing to buy bitcoin every quarter indefinitely.
Saylor rebutted concerns circulating within certain circles of the bitcoin community, which suggested that the leverage and cash position of his company could exert pressure to sell if market prices decline. “That’s just an unfounded concern,” he maintained, arguing that his company has thoughtfully managed its balance sheet to withstand price fluctuations. He highlighted that Strategy holds substantial cash reserves capable of meeting dividend and debt obligations for approximately two and a half years.
The comments come at a time when bitcoin markets are experiencing notable volatility after a recent pullback from highs, prompting reflections on the sustainability of corporate treasury strategies heavily linked to the cryptocurrency. As one of the largest public holders of bitcoin, Strategy’s stock has exhibited characteristics of a leveraged proxy for the cryptocurrency’s price movements. Saylor characterized bitcoin’s inherent volatility as a feature of “digital capital,” asserting that it is more volatile than traditional assets like gold or equities. He advised a long-term perspective, stating that potential investors should look beyond short-term price fluctuations, as bitcoin has historically outperformed other capital assets over extended periods.
“If you’ve got a time horizon less than four years, you’re not really a capital investor,” Saylor asserted, suggesting that those focused on shorter timeframes might benefit from trading but miss the broader performance trends seen over four-year cycles. When questioned by host Andrew Ross Sorkin about the implications of a significant and sustained drop in bitcoin’s value, Saylor noted that his company could pursue debt refinancing options instead of resorting to selling its bitcoin holdings. He expressed confidence that lenders would still be willing to provide financing due to bitcoin’s lasting value despite market downturns.
Saylor further elaborated on the company’s equity structure, noting its design to amplify movements in bitcoin’s price, resulting in faster growth during upward trends and sharper declines in downturns. This volatility, in Saylor’s view, enhances liquidity and increases demand for new “digital credit” instruments created on the basis of bitcoin holdings.
Regarding overall market dynamics, Saylor minimized the role of miner economics in establishing price floors and suggested that traditional banking and Wall Street credit products will increasingly influence the next phases of bitcoin’s development. While Saylor refrained from providing a specific 12-month price projection, he anticipates that bitcoin will outperform the S&P 500 over the next four to eight years.
As of the latest figures, bitcoin is trading near $69,000, while Strategy shares are approximately $135 each during pre-market trading. Notably, the company recently acquired 1,142 BTC for around $90 million, elevating its total bitcoin holdings to approximately 714,644 BTC.
