Michael Saylor, chairman of MicroStrategy (MSTR), dismissed fears that the company might be compelled to liquidate its bitcoin holdings amid declining prices as “baseless.” During an interview with CNBC, he reaffirmed the firm’s dedication to continuously acquiring more bitcoin.
“Our net leverage ratio is only half that of a typical investment-grade company,” Saylor explained. “We hold enough dividends and bitcoin to cover 50 years, and our cash reserves alone amount to two and a half years’ worth of dividends. Selling is not on our agenda; instead, we plan to keep purchasing bitcoin regularly—likely every quarter indefinitely.”
Just last week, MicroStrategy expanded its portfolio by adding 1,142 bitcoins at an average cost of $78,815 each for approximately $90 million. This brings their total bitcoin holdings to 714,644 coins acquired at a cumulative price near $54.35 billion—resulting in an average purchase price around $76,056 per coin—which remains notably higher than the current market value hovering near $69,000.
Saylor’s remarks come amidst notable volatility in bitcoin’s price over recent months—a fluctuation he considers intrinsic to the asset itself. He emphasized: “Bitcoin represents digital capital that tends to be two-to-four times more volatile than traditional assets like gold or equities or real estate. However, it has also outperformed these conventional investments by two-to-four times this decade. It stands as one of the most versatile global capital assets available today; you can apply greater leverage and trade it through numerous channels unlike any other asset class. Thus volatility should be viewed not as a flaw but rather as an essential characteristic.”
MicroStrategy reported substantial financial impacts for Q4: operating losses reached $17.4 billion while net losses totaled $12.6 billion—largely driven by non-cash mark-to-market adjustments linked directly with falling bitcoin prices. These figures underscore how fluctuations in cryptocurrency valuations continue influencing corporate earnings despite MicroStrategy’s long-term investment approach.
Saylor also touched upon perceptions that current pricing levels may signal increased maturity within the bitcoin market—a development he regards positively.
The company’s robust balance sheet combined with its digital credit operations form key pillars supporting its overall strategy according to Saylor. The digital credit instruments issued have become some of this decade’s most actively traded products generating significantly higher cash flows compared with traditional fixed-income securities while surpassing preferred stock trading volumes substantially.
“There is absolutely no credit risk embedded within our balance sheet,” he asserted confidently.
While refraining from short-term forecasts regarding bitcoin prices,Saylor maintained strong faith in long-term growth potential: “I don’t make predictions spanning just twelve months; however I firmly believe Bitcoin will outperform the S&P index by doubling or tripling returns over four-to-eight years—and frankly that outlook suffices.”
The company’s shares declined by 3% on Tuesday alone bringing year-to-date losses up to 15%, alongside a staggering year-over-year drop nearing 60%.