Michael Saylor admits Strategy shareholders ‘would suffer’ if Bitcoin were to ‘fall 90% and stay there for 4 or 5 years’
From Yahoo Finance: 2025-05-15 12:54:00
Strategy executive chairman Michael Saylor admits shareholders could suffer if Bitcoin price falls for years. The company holds $59 billion in Bitcoin and continues to invest. Questions arise about its ability to service debt due to lack of cash compared to crypto holdings.
Saylor places all bets on crypto, believing Bitcoin is the best investment asset. Strategy’s focus is on acquiring more Bitcoin to win in the endgame, rather than organic growth from its business software.
Strategy raised $580 million through a preferred stock offering in January to buy more Bitcoin. Another offering in March aims to raise cash solely for Bitcoin purchases, raising questions about sustainability.
As of March 31, Strategy holds $60.3 million in cash compared to $43.5 billion in Bitcoin, potentially facing negative impacts if forced to sell Bitcoin at a loss to meet working capital requirements.
Despite potential risks, Saylor remains steadfast about the company’s stability even in a crypto downturn, emphasizing the capital structure’s resilience to a 90% Bitcoin price drop for years.
While a drop in Bitcoin’s price could lead to a larger fall in Strategy’s stock price, the cryptocurrency has seen a 20% increase this month and a 65% surge from a year ago.
Strategy and Saylor did not provide comment, with questions remaining on the sustainability of the company’s heavy debt reliance on Bitcoin investments.