In a recent interview on CNBC, Strategy’s co-founder and Executive Chairman Michael Saylor reiterated the company’s robust commitment to Bitcoin, stating that their acquisitions of the cryptocurrency are intensifying. Despite the current volatility in the market, with Bitcoin recently dipping below the $100,000 mark and trading at around $96,365, Saylor remains optimistic, indicating that the company will continue to bolster its existing $62.3 billion Bitcoin reserve.
Addressing rumors that Strategy might be liquidating its Bitcoin holdings, Saylor firmly denied any such intentions, describing the firm’s appetite for BTC as “insatiable.” He emphasized, “We are buying Bitcoin, and we’ll report our next buys on Monday morning,” adding that observers might be taken by surprise at the extent of their purchases.
The backdrop to these comments includes speculation from analysts and market observers regarding potential sales by the company, fueled by data from the crypto intelligence platform Arkham Analytics. There were indications that Strategy might be utilizing Coinbase as a custodian, leading some to believe that asset liquidation could be in play. Prediction market Myriad showed fluctuating odds regarding the possibility of Strategy selling its Bitcoin in 2025, reflecting shifting market sentiments.
TD Cowen Analyst Lance Vitanza remarked that while there are scenarios under which Strategy could theoretically be compelled to sell, such events are deemed highly unlikely. The company does have convertible bonds maturing in 2028, providing a buffer against immediate sales. Saylor highlighted that any selling activity observed in the market could be attributed to long-term holders capitalizing on the recent price surge rather than institutional selling from Strategy itself.
As for its financial health, Saylor assured that the company’s balance sheet remains stable. He claimed that even if Bitcoin were to plummet 80%, Strategy would still be overcollateralized in relation to its debt structure, which currently stands at $8.2 billion raised through convertible bonds. The firm’s stock price has taken a hit, falling 32% in the past month amid Bitcoin’s decline, with shares trading at around $204.
Saylor’s confident demeanor comes despite criticisms from short sellers, who have questioned the long-term viability of Strategy’s business model. He reassured stakeholders that there is no immediate concern regarding dividend payments on its preferred shares, which total around $7.6 billion, as they are contingent upon board discretion. That said, the company does have an annual dividend burden of approximately $735 million.
In a market landscape where funding through common stock issuance has lessened in effectiveness, Strategy’s market capitalization of $59 billion contrasts sharply with its Bitcoin holdings’ value, which is notably higher at $62.3 billion. This scenario yields a multiple-to-net asset value (mNAV) approaching 0.95x, with the firm’s own calculation placing it around 1.2x.
Saylor’s remarks underline a persistent and calculated approach from Strategy, as they navigate the tumultuous landscape of cryptocurrency investment while facing scrutiny and speculation from various fronts.
