In a bold display of conviction, MicroStrategy Executive Chairman Michael Saylor outlined the company's contingency plan should Bitcoin experience a catastrophic 90% price decline. During an interview on CNBC's Squawk Box, Saylor stated that if BTC were to fall to around $8,000, the company would simply refinance its existing debt and continue its acquisition strategy. "If BTC falls 90% in the next four years, we’ll refinance the debt," Saylor declared, emphasizing the firm's long-term commitment.
Saylor's confidence stems from MicroStrategy's robust financial position, which he claims includes 50 years' worth of dividends held in Bitcoin and 2.5 years' worth in cash on its balance sheet, insulating it from credit risk. He argued that the potential selling pressure from Bitcoin miners would be overwhelmingly offset by the entry of major traditional finance institutions. Big banks like Charles Schwab, Citibank, JPMorgan, and BNY Mellon showing significant interest in offering credit against Bitcoin would, in his view, "negate the miners’ influence by a factor of 10" and provide enough liquidity to keep BTC above $60,000.
The comments come amid volatility for MicroStrategy's stock (MSTR), which swung dramatically last week. This volatility had fueled speculation about a potential margin call forcing the company to liquidate Bitcoin holdings. However, prediction market Polymarket indicates traders are betting against that scenario, with only an 11% probability assigned to MicroStrategy facing a margin call by 2026.
Separately, Saylor reinforced his thesis on social media, urging followers to "Go Bitcoin today — the money won’t fix itself," positioning Bitcoin as a hedge against fiat currency devaluation. His firm's actions back the rhetoric; MicroStrategy recently purchased an additional 1,142 BTC for roughly $90 million, bringing its total holdings to 714,644 BTC with an average cost of $76,056 per coin. Despite an estimated unrealized loss of nearly $6 billion at current prices, the company's disclosed seven-year roadmap aims to raise Bitcoin per share through 2032, adhering to a strict "buy and do not sell" mantra.
