TLDR
- Michael Saylor confirmed Strategy will never sell bitcoin and plans to buy quarterly indefinitely, even if prices plunge to $8,000 from current $70,000+ levels.
- Strategy purchased 1,142 bitcoin for $90 million at $78,810 average price during the week ending Feb. 8, raising total holdings to 714,644 bitcoin.
- The company faces a $5.2 billion unrealized loss with bitcoin below $70,000 and average purchase price of $76,056 per bitcoin.
- Strategy’s debt structure features long-dated convertible notes with no margin-call triggers and 2.5 years of cash runway for debt payments.
- The $8,000 threshold represents where bitcoin value would equal Strategy’s $4-6 billion net debt, triggering refinancing rather than forced sales.
Strategy Executive Chair Michael Saylor delivered a clear message this week. The company won’t sell bitcoin no matter how far prices fall.
Saylor told CNBC that Strategy plans to buy bitcoin quarterly “forever.” He said the company wouldn’t sell even if prices crashed to $8,000.
That represents an 88% drop from current levels above $70,000. But Saylor isn’t worried about worst-case scenarios.
The stance comes as Strategy carries a $5.2 billion unrealized loss on its bitcoin holdings. The company owns 714,644 bitcoin at an average purchase price of $76,056.
With bitcoin trading below $70,000, the position sits underwater. Yet Strategy keeps buying.
During the week ending Feb. 8, the company spent $90 million on bitcoin. It acquired 1,142 bitcoin at an average price of $78,810.
Those purchases came at the week’s highest prices. Bitcoin had fallen near $60,000 before recovering above $70,000.
Strategy stock dropped 1.8% Tuesday after a brief rally. Shares had jumped 29.4% over two days following a slide to the lowest level since May 2024.
The stock has fallen 9.2% in February. It plunged 63% through a seven-month losing streak that ended in January.
No Liquidation Risk Until $8,000
Saylor’s $8,000 figure relates to Strategy’s balance sheet structure. At that price, the company’s bitcoin value would roughly match its net debt.
Strategy carries between $4 billion and $6 billion in net debt. At $8,000 per bitcoin, 714,644 bitcoin would be worth approximately $5.7 billion.
CEO Phong Le outlined the scenario. If bitcoin fell 90% to $8,000, Strategy would pursue restructuring or issue additional equity or debt.
But the company faces no automatic liquidation triggers. Strategy’s debt consists of long-dated convertible notes maturing through 2032 and beyond.
These notes carry interest rates between 0% and 1%. They lack margin maintenance covenants tied to bitcoin prices.
That’s the critical difference from margin loans. Strategy won’t face forced sales like retail traders or hedge funds.
The company maintains 2.5 years of cash to cover dividends and debt payments. Saylor said Strategy would refinance debt if bitcoin collapsed.
Volatility as Strategy
Saylor called bitcoin volatility both a challenge and an opportunity. He said digital capital runs two to four times more volatile than gold, stocks, or real estate.
Strategy’s stock amplifies bitcoin’s moves. It drops faster during declines but rises faster during rallies.
Saylor targets investors with four-year or longer time horizons. He expects bitcoin to double the S&P 500’s returns over that period.
The strategy depends on bitcoin’s 21 million supply cap and growing institutional adoption. Strategy issues convertible debt to fund purchases rather than using only cash.
When bitcoin rises, holdings strengthen the balance sheet. When bitcoin falls, debt doesn’t trigger automatic sales.
Strategy also runs a business intelligence software division. That revenue remains small compared to bitcoin exposure.
The company navigated similar pressure in 2022 when bitcoin fell below $20,000. It added collateral to a loan instead of selling bitcoin.
Saylor treats bitcoin as a treasury reserve, not a trading position. He views it as superior to cash or bonds for long-term value storage.
