Michael Saylor defended the strategy of buying Bitcoins on CNBC Squawk box earlier today, dismissing concerns that the company could be forced to sell its assets during a prolonged downturn and reiterating plans to continue adding bitcoin on a regular basis.
“We will not be selling; we will be buying bitcoin,” Saylor said. “I expect we’ll be buying bitcoin every quarter forever.”
Saylor pushed back against speculation in some parts of the bitcoin community that Strategy’s strength and currency situation could create pressure to liquidate if prices remain depressed. He called those fears unwarranted, saying the company had structured its balance sheet to withstand volatility.
“That’s an unfounded concern,” Saylor said, pointing to what he described as a tighter ratio relative to typical investment-grade companies and capital infusions. He said Strategy has enough cash to pay dividends and debt obligations for about two and a half years.
The comments come as bitcoin markets face renewed volatility following a recent reversal, raising questions about the sustainability of corporate treasury strategies closely aligned with the asset. The strategy has become one of the largest holders of bitcoin, and its stock trades as an effective proxy for bitcoin price movements.
Saylor attributed bitcoin’s volatility to what he calls “digital currency,” arguing that the asset remains more volatile than traditional stores of value like gold, stocks, or real estate.
He said that over longer horizons, bitcoin has outperformed other major assets and should be viewed through a multi-year lens rather than short-term price movements.
“If you have less than four years, you’re not really an investor,” he said, adding that traders may benefit from price swings while long-term investors focus on performance over four-year cycles.
The strategy does not sell its bitcoin
Pressed by host Andrew Ross Sorkin about what would happen if bitcoin fell sharply and stayed low for years, Saylor said the strategy could be to refinance debt instead of selling bitcoin. He pointed out that lenders will continue to provide financing because bitcoin retains value despite the drawdown.
Saylor also said that the company’s equity is designed to increase the movement of bitcoin, rising quickly during rallies and falling hard during downturns. The Strategy’s volatility, he said, is creating capital purchases and demand for what he described as new “digital debt” instruments issued on top of bitcoin holdings.
In the broader market structure, Saylor played down the idea that the miners’ economy is creating a strong price, suggesting that bank lending and Wall Street credit products will play a big role in shaping bitcoin’s next phase.
Saylor declined to give a 12-month price forecast, but said he expects bitcoin to outperform the S&P 500 in the next four to eight years.
At the time of writing, Bitcoin is trading near $69,000 and Strategy shares are around $135 a share in pre-market trading.
The strategy recently bought 1,142 BTC for about $90 million between February 2-8, bringing its total holdings to about 714,644 BTC.
