TLDR
- Michael Saylor dismissed concerns that Strategy might sell its bitcoin holdings due to price fluctuations.
- Saylor emphasized that the strategy’s financial position ensures it will continue buying bitcoin.
- The company recently purchased 1,142 bitcoins for $90 million, bringing its total holdings to 714,644 coins.
- Strategy’s average cost per bitcoin is $76,056, well above the current price of around $69,000.
- Despite recent losses, Saylor expressed confidence in bitcoin’s long-term performance and the Strategy’s investment strategy.
Michael Saylor, chairman of Strategy, has dismissed concerns that the company might be forced to sell its bitcoin holdings amid the cryptocurrency’s fluctuating prices. He reassured investors during a CNBC interview, emphasizing that the company remains committed to buying bitcoin, despite the recent price decline. Saylor clarified that Strategy’s financial position and long-term strategy do not necessitate the sale of its bitcoin assets.
Saylor Addresses Bitcoin Concerns
Saylor explained that worries about the company selling bitcoin are “unfounded.” He pointed out that Strategy’s net leverage ratio is half of what is typical for investment-grade companies, ensuring its stability.
“We’ve got 50 years’ worth of dividends and bitcoin,” Saylor said. “We’ve got two and a half years’ worth of dividends just in cash on our balance sheet.”
He further assured that the company would continue to purchase Bitcoin. “We’re not going to be selling, we’re going to be buying bitcoin,” he stated, adding that he expects the company to buy bitcoin every quarter for the foreseeable future.
Last week, Strategy added 1,142 bitcoins to its holdings, totaling roughly $90 million. The coins were purchased at an average price of $78,815 each, bringing the company’s total bitcoin holdings to 714,644 coins. The total investment in bitcoin now stands at approximately $54.35 billion, with an average cost of $76,056 per bitcoin.
Despite bitcoin’s recent price dip, which has seen it trading around $69,000, Strategy is not planning to sell its holdings. Saylor emphasized that the volatility of bitcoin is part of its nature and that it has outperformed traditional assets such as gold, equity, and real estate.
Financial Performance and Strategy’s Long-Term Outlook
Strategy reported a fourth-quarter operating loss of $17.4 billion, largely due to non-cash mark-to-market accounting related to bitcoin’s price drop. The company’s net loss for the period stood at $12.6 billion. Despite these results, Saylor remains confident in the company’s long-term strategy, which focuses on bitcoin and its digital credit business.
Saylor declined to make short-term bitcoin price predictions but expressed optimism about its long-term performance. He stated that he believes bitcoin will outperform the S&P 500 over the next four to eight years. This aligns with Strategy’s broader vision of maintaining a long-term approach to its bitcoin investments, unaffected by short-term market movements.
Shares of Strategy have experienced a decline, with the company’s stock down 3% on Tuesday, contributing to a year-to-date drop of 15%. Over the past year, the company’s shares have fallen by 60%. However, Saylor’s confidence in the company’s strategy remains unchanged, and he continues to prioritize bitcoin as a core asset.
