Michael Saylor's Strategy Boosts Bitcoin Holdings Despite Recent Price Drop

Michael Saylor, the influential executive chairman of Strategy, revealed on Friday that his company is aggressively acquiring more Bitcoin even as the cryptocurrency is going through a rough patch. The digital asset dipped to a low of $94,681 earlier in the day before rebounding toward $96,000, and it now trades at approximately $95,896 at the time of this writing. This move underscores Strategy's steadfast commitment to Bitcoin as a core treasury asset amid broader market fluctuations.

In a live appearance on CNBC's Squawk Box, Saylor shared details of the firm's ongoing strategy with characteristic confidence. He emphasized that the purchases are not just routine but accelerating in pace. Viewers can expect an official update on these acquisitions when Strategy reports its next buys on Monday morning, a disclosure Saylor hinted would exceed expectations.

The timing of these buys aligns with Bitcoin's impressive post-election trajectory. Since the Trump victory, the price has surged from around $68,000 to a peak near $125,000 over the past five weeks. Saylor highlighted this momentum as part of a larger pattern, noting Bitcoin's compounded annual growth rate of about 50% over the last five years, far outpacing traditional benchmarks.

Saylor Highlights Superior Returns and Risk Management

Strategy's Bitcoin-centric approach has delivered substantial value to shareholders, according to Saylor. The firm now controls 641,692 BTC, representing more than 3% of the total Bitcoin supply, acquired at an average price of roughly $74,000 per coin. Over the same five-year period, this strategy has generated a 71% return, placing it on equal footing with high-flying tech names like Nvidia.

Saylor pointed out that no other stock in the S&P 500 has matched this performance, positioning Strategy as a standout in the index. This success stems from a deliberate pivot toward Bitcoin as digital property, a shift that has redefined the company's identity in the eyes of investors. As Bitcoin's value continues to evolve, so does the narrative around corporate adoption of the asset.

Addressing investor worries about financial leverage, Saylor provided reassuring details on the firm's balance sheet. Strategy maintains a leverage ratio below 1.15 times, supported by debt maturities stretching out four and a half years into the future. He stressed that even in a severe downturn, such as an 80% drop in Bitcoin's price, the company would remain overcollateralized and operationally sound.

To further enhance shareholder value without introducing undue risk, Strategy is exploring preferred equity structures for amplification. These instruments carry no credit default exposure, allowing the firm to scale its Bitcoin exposure methodically. Saylor's comments aim to calm nerves in a market prone to overreactions, reinforcing the long-term viability of the approach.

The interview also touched on broader debates within the cryptocurrency space, including Cathie Wood's recent adjustments to her Bitcoin price forecasts and her cautions about stablecoins potentially eroding Bitcoin's utility. Saylor respectfully pushed back, arguing that stablecoins serve a distinct role in the ecosystem. He described the digital economy as bifurcated, with Bitcoin functioning as a form of digital capital akin to real estate or equities, while proof-of-stake platforms like Ethereum and Solana handle transactional finance.

Stablecoins, Saylor predicted, will expand dramatically from hundreds of billions to trillions in market cap. Yet he views this growth as complementary rather than competitive, preserving Bitcoin's unique position as a store of value. This perspective aligns with Strategy's philosophy of treating Bitcoin not as a medium of exchange but as a foundational asset for wealth preservation.

Earlier that day, Saylor took the opportunity to quash circulating rumors about Strategy offloading its Bitcoin reserves. Social media buzz, fueled by various online "influencers" known for sensational content and clickbait, suggested the firm was selling for the first time ever and dipping below net asset value, implying its holdings were underwater relative to debt. Many posts warned of a potential death spiral and forced liquidations, drawing widespread attention through viral shares.

These claims, however, lacked substantiation and quickly unraveled under scrutiny. Strategy has adhered to its multi-year accumulation plan without deviation, showing no signs of divestment. Saylor's direct rebuttal serves as a reminder of the pitfalls in unverified online narratives, especially in an industry where misinformation can amplify volatility.

As Bitcoin stabilizes around current levels, Strategy's actions signal enduring optimism among institutional players. The firm's upcoming disclosure on Monday could provide fresh insights into acquisition volumes and pricing, potentially influencing market sentiment. For analysts watching closely, Saylor's words offer a counterpoint to the noise, emphasizing disciplined strategy over fleeting headlines.