In a recent appearance on CNBC, Strategy (MSTR) Executive Chairman Michael Saylor addressed concerns regarding the company’s commitment to its bitcoin acquisition strategy. Amid a significant decline in both bitcoin prices, currently hovering around $96,244.76, and MSTR’s stock, Saylor reaffirmed the company’s dedication to accumulating more bitcoin.
Saylor disclosed that the firm plans to announce its latest bitcoin purchases on Monday, indicating a ramp-up in buying activity. This announcement comes on the heels of speculation on social media suggesting that Strategy might have been offloading its bitcoin holdings due to observed movements of BTC from company-controlled wallets. In response, Saylor took to X, dismissing these rumors outright and stating, “There is no truth to this rumor.”
Highlighting the larger context of the current bitcoin market, Saylor urged investors to maintain a broader perspective. He reminded them that bitcoin was previously trading in a range of $55,000 to $65,000 just over a year ago. Despite the recent downturn, he pointed out that the current bitcoin price still represents a strong return.
Saylor expressed confidence in bitcoin’s potential recovery from these levels, noting that the cryptocurrency has established a solid support base. However, MSTR’s stock has seen a decline of 4% early in the day, dropping below $200 and showing a nearly 35% decrease year-to-date. This downturn in the stock price follows a broader movement in the crypto market, with bitcoin witnessing a 5.8% decline over the past 24 hours.
For investors, the situation raises questions about the strategy’s financial standing. Currently, Strategy holds more than 641,000 BTC, valued at approximately $22.5 billion, while the company’s market capitalization has fallen below this asset value. This discrepancy has resulted in MSTR’s market-to-net-asset value (mNAV) dropping below 1, which suggests the stock could be undervalued. Given this context, selling off some bitcoin to stabilize finances may appear to be a reasonable course of action for the company.
