- Saylor dismissed concerns that a fall in Bitcoin prices would raise credit risks for Strategy, stating that the company will refinance the debt if Bitcoin falls by 90% over the next four years.
- The Strategy co-founder added that he expects the company to continue buying Bitcoin every quarter.
- The company’s current Bitcoin holdings stand at 714,644, with an average purchase price of $76,056, bringing the total acquisition cost to $54.35 billion.
Strategy Inc. (MSTR) co-founder and Executive Chairman Michael Saylor reportedly played down Bitcoin's volatility on Tuesday.
“Volatility is the bug, but the volatility is the feature, and we believe that digital capital, because it’s so much more performant, is the base for an entirely new financial instrument that we call digital credit,” Saylor said during an interview with CNBC.
The Strategy co-founder also called Bitcoin ‘digital capital,’ and said that it can be up to two to four times as volatile as traditional capital, such as gold, equities, or real estate. However, he said Bitcoin has been two to four times as performant as those other assets.
Strategy shares were down by more than 1% in Tuesday morning’s trade. Retail sentiment around the company trended in the ‘neutral’ territory at the time of writing.
Bitcoin prices were hovering around $69,242 at the time of writing, up 0.5% over the last 24 hours.
Saylor Plans To Further Accumulate Bitcoin
Saylor dismissed concerns that a fall in Bitcoin prices would raise credit risks for Strategy, stating that the company will refinance the debt if Bitcoin falls by 90% over the next four years. “We’ll just roll it forward,” he said during the interview.
The Strategy co-founder added that he expects the company to continue buying Bitcoin every quarter.
Strategy’s current Bitcoin holdings stand at 714,644. At an average purchase price of $76,056, the company’s total BTC acquisition cost stands at $54.35 billion.
Siegel On Recent Bitcoin Drawdown
Jeremy Siegel, professor emeritus of finance at the University of Pennsylvania’s Wharton School of Business, believes the recent drawdown in Bitcoin prices was substantial.
He pointed to the wealth effect of the decline in Bitcoin prices, noting that it created cross-selling pressure that likely contributed to volatility in other momentum trades.
“What is undeniable is the wealth effect: with several trillion dollars of wealth in crypto, a 30–40% drawdown inevitably spills over into broader risk assets through margin calls and portfolio realignments,” he said.
MSTR stock is down 9% year-to-date, while BTC is down 21%.
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