Strategy Chairman Michael Saylor has published a new assessment of the company’s long-term Bitcoin strategy. Saylor stated that despite the heavy balance sheet pressure experienced during the
Strategy Chairman Michael Saylor has published a new assessment of the company’s long-term Bitcoin strategy.
Saylor stated that despite the heavy balance sheet pressure experienced during the 2022 bear market, they did not back down from their BTC strategy and subsequently strengthened the company’s financial position through aggressive purchases.
Saylor recalled a speech he gave about Bitcoin in October 2022, when the BTC price was around $20,000. At that time, Strategy held 130,000 Bitcoin, with a market capitalization of approximately $2.6 billion. Following the stock split, MSTR shares were trading at around $24.
However, market conditions deteriorated sharply in a short time. The BTC price fell to around $16,000 within a few weeks, while the company’s debt at one point exceeded the total value of its Bitcoin and cash reserves by approximately $300 million. MSTR shares also dropped to around $13 towards the end of the year. During this period, Strategy’s balance sheet came under significant pressure.
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According to Saylor, the company did not change its core BTC strategy despite the deep bear market. Strategy continued its Bitcoin purchases by optimizing its operations and raising capital through different channels.
Saylor stated that the company has raised over $60 billion in new capital since 2022, and that this funding has been used for BTC purchases. During this period, a total of 716,000 BTC was added to Strategy’s Bitcoin holdings.
Saylor stated that the total value of the company’s current Bitcoin and cash reserves exceeds its total debt by approximately $48 billion.
Saylor’s remarks came after the company lost $100 of its fixed-income STRC product, raising questions about the company’s financial health.
*This is not investment advice.
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