Michael Saylor remains unfazed by concerns over Strategy’s credit risk, despite the ongoing decline in bitcoin prices. He emphasized that the company has already accounted for challenging market conditions. Even if bitcoin prices plunge sharply and remain depressed for an extended period, Strategy intends to persist. The approach is straightforward: should bitcoin experience a prolonged collapse, the company will refinance its debt and extend repayment timelines.
At the time of Saylor’s remarks, bitcoin was trading near $68,970 after dropping 9% within five days. The cryptocurrency had dipped as low as $60,062 — its lowest point in about 16 months — representing a fall of more than 50% from its all-time high. Despite this downturn, Saylor reaffirmed that Strategy will continue purchasing bitcoin every quarter without selling any of its existing holdings.
Saylor Details Debt Refinancing Strategy Amid High Leverage
On CNBC, Michael Saylor—co-founder and executive chairman—explained that even a severe market crash wouldn’t alter their strategy. “If bitcoin declines by 90% over the next four years,” he said, “we’ll simply refinance our debt and push it forward.”
When questioned about whether lenders would still provide financing under such conditions, he confidently responded affirmatively. He attributed lender interest to bitcoin’s inherent volatility and argued that volatility does not destroy value.
Strategy currently carries over $8 billion in total debt largely stemming from convertible notes issued to acquire bitcoins. The firm holds approximately 714,644 bitcoins valued at around $49 billion today—making it the largest corporate holder globally. According to Saylor, they plan on continuously buying more bitcoins each quarter indefinitely while refraining from selling any assets.
The company also maintains roughly two-and-a-half years’ worth of cash reserves sufficient to cover dividend payments comfortably. Additionally, with no margin calls looming and $2.25 billion available in cash reserves—which can fund interest payments plus distributions for more than two years—the financial position appears stable despite increasing pressure as current prices trade below their average acquisition cost of $76,052 per coin.
Worsening Losses Amid Reduced Volatility And Defensive Investor Sentiment
The financial picture has deteriorated significantly on paper recently: In its latest quarterly earnings report for Q4 alone Strategy posted a net loss totaling $12.4 billion due primarily to mark-to-market reductions linked directly with falling Bitcoin valuations—as reported by Cryptopolitan.
This week saw further downward pressure pushing Strategy’s portfolio value beneath total purchase costs—a first since early last year—effectively erasing gains made post-election cycles.
The firm also cautioned investors against expecting profits anytime soon; projections indicate no earnings generation this year or near future periods either way.Their statement noted distributions paid out on perpetual preferred shares are expected presently be tax-exempt given these circumstances.The stock price dropped roughly 2% following Bitcoin slipping below seventy thousand dollars again,and shares have declined over forty percent during past three months overall timeframe.
Cautionary signals emerge across markets: implied volatility measures for Bitcoin decreased substantially—from approximately eighty-three percent down close sixty percent—suggesting muted expectations regarding sharp price swings going forward.At same time options traders appear defensive evidenced through persistent put skew bias toward downside protection demand (the so-called “25 delta call-put skew”).
During recent earnings conference call CEO Phong Le advised newer investors who bought within last twelve months stay patient.“If you purchased Bitcoin or MSTR recently,this is your initial downturn,my recommendation is hold tight,” stated Phong.Leading his remarks triggered frustration among some viewers watching live chat streams online.
Over past four years,Srategy functioned effectively like high-beta proxy tied closely with Bitcoin performance.Its share price surged more than thirty-five hundred percent between twenty-twenty through twenty-twenty-four.This rapid appreciation was fueled both via equity offerings plus leveraged borrowing strategies,but also attracted criticism targeting leveraged crypto exposure.Saylor firmly reiterated such critiques won’t sway or modify their long-term vision moving forward.
Michael Saylor remains unfazed by concerns over Strategy’s credit risk, despite the ongoing decline in bitcoin prices. He emphasized that the company has already accounted for challenging market conditions. Even if bitcoin prices plunge sharply and remain depressed for an extended period, Strategy intends to persist. The approach is straightforward: should bitcoin experience a prolonged collapse, the company will refinance its debt and extend repayment timelines.
At the time of Saylor’s remarks, bitcoin was trading near €$€6€8€9€7€0&comma after dropping €% within five days.amp;amp;amp;amp;amp;amp;aacute;;The cryptocurrency had dipped as low as $60,062 — its lowest point in about  months
.representing a fallofmorethan50percentfromitsalltimehigh.Despitethisdownturn,SaylorreaffirmedthatStrategywillcontinue purchasingbitcoineveryquarterwithoutsellinganyofitsexistingholdings.
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