TL;DR
- Michael Saylor defended Strategy’s Bitcoin investment approach as the company’s stock fell nearly 50% over six months.
- The firm recently purchased an additional 8,178 BTC for $835.6 million, raising its total holdings to 649,870 BTC.
- Strategy maintains a business model built to withstand 80–90% drawdowns, with leverage between 10% and 15%.
Michael Saylor defended Strategy’s Bitcoin investment strategy, noting that the company’s shares dropped close to 50% over the past six months.
Saylor stated that the recent market volatility is normal and that Bitcoin has historically recovered from major corrections, reaching new all-time highs. He noted that since 2020, Bitcoin’s volatility has decreased from 80% to around 50%, roughly 1.5 times that of the S&P 500, while delivering comparable returns. According to Saylor, each market dip removes weak positions and reduces leverage, setting the stage for the next upward rally.
The CEO considers Bitcoin a unique opportunity for those seeking to preserve capital without counterparty risk. He emphasized that the cryptocurrency remains stronger than ever and that its growth potential is intact despite short-term fluctuations. Strategy continues its aggressive BTC accumulation, using both equity and credit instruments. Over the past five years, the company has grown approximately 70% annually, while Bitcoin has returned around 50% per year.
Strategy Can Withstand Drawdowns of Up to 90%, According to Saylor
Strategy recently acquired 8,178 additional BTC for $835.6 million, bringing its total holdings to 649,870 BTC. The average purchase price was $102,171, roughly 10% above current market levels.
Saylor stated that the company is designed to endure 80–90% drawdowns without compromising its ability to generate shareholder value. With leverage currently at 10–15%, the firm can adapt even if BTC stops appreciating temporarily.
Strategy’s stock currently trades at $206.80 and exhibits high volatility, reflecting market sensitivity to any BTC correction. Bitcoin, meanwhile, has slightly recovered to $91,400, though it remains down 13% for the week.
Saylor emphasized that Strategy’s strength does not depend on short-term price movements, but on the sustainability of its model and Bitcoin’s maturation. The company combines massive holdings with a robust operational design, allowing it to continue accumulating BTC and distributing dividends while maintaining its long-term plan
