Michael Saylor’s company Strategy is attracting attention following the sharp drop in Bitcoin (BTC). Today, with Bitcoin below $81,000, the timing of the company’s vast BTC portfolio entering loss territory is once again a topic of discussion.
The strategy holds a total of 649,870 BTC. The current market capitalization of the portfolio is $54.24 billion and the average cost of companies is $74,433. Based on this level, Strategy still appears to have a 12.13% return (approximately +$5.86 billion). However, Bitcoin’s rapid decline suggests it is approaching crisis levels.
Year-over-year, Strategy stock fell 59.02%, while Bitcoin fell 15.72%. The difference was -43.30 points, revealing a decline in the company’s market value.
Despite this, Michael Saylor says he’s not worried. In an interview with Fox, he claimed that Strategy “could survive an 80-90% drop in Bitcoin as long as we continue to operate.” Saylor downplayed comments suggesting the company’s growing BTC position would be under pressure as the market declines.
Saylor noted that Bitcoin has experienced 15 major declines in the last 15 years, each time to new highs, and said the sharp corrections “wiped out leveraged positions and bearish investors.” He also noted that compared to Strategy’s initial purchases in 2020, Bitcoin volatility has decreased from 80% to 50% year-over-year.
*This is not investment advice.
