MicroStrategy, the largest corporate holder of Bitcoin, has reaffirmed its long-term commitment to the cryptocurrency despite reporting significant paper losses on its holdings. In recent statements, Executive Chairman Michael Saylor described the current market downturn as a "crypto winter" but argued it is milder and will be shorter than previous cycles.
The company disclosed it purchased an additional 2,486 Bitcoin last week for approximately $168.4 million. This brings MicroStrategy's total Bitcoin treasury to 717,131 BTC, acquired at an average price of around $76,027 per coin. With Bitcoin currently trading near $67,700, the company's holdings are underwater by roughly $5 billion on paper.
Addressing concerns about the company's financial stability, Saylor stated that MicroStrategy could manage its debt even if Bitcoin's price fell to $8,000. He emphasized that recent purchases were financed through equity sales, not debt, and highlighted the company's strong cash position of approximately $2.25 billion. "We sold equity that was a massive premium to the Bitcoin at the time," Saylor explained, describing the balance sheet as "fairly indestructible" and capable of supporting Bitcoin acquisitions for the next 50 to 60 years.
Saylor expressed optimism for a market recovery, citing increased institutional and political support. He pointed to stronger backing from the banking sector and noted, "We've got a Bitcoin president" in reference to U.S. President Donald Trump, along with a supportive administration. He predicted the crypto winter would end soon, leading to a "glorious summer" for Bitcoin.
The company plans to continue its strategy of steady Bitcoin accumulation, with purchases expected at least once per quarter. Saylor also mentioned plans to convert the company's convertible bonds into shares within the next three to six years.
