Strategy to keep buying Bitcoin despite debt load
Strategy Chairman Michael Saylor said the company does not plan to sell its Bitcoin holdings even in the event of a prolonged market downturn, reaffirming its commitment to regular purchases of the asset. He dismissed concerns that the company’s debt load or liquidity position could force a shift in strategy.
Speaking on CNBC, Saylor said Strategy intends to continue increasing its Bitcoin position on a regular basis. The company, which previously reported record quarterly losses, expects to make Bitcoin purchases every quarter. He added that Strategy holds sufficient liquidity to cover debt obligations and dividend payments for roughly two and a half years without selling Bitcoin.
Volatility and a long-term view
The comments come amid heightened market volatility following Bitcoin’s pullback from recent highs. Strategy remains one of the largest public holders of Bitcoin, with its shares often used by investors as a proxy for the cryptocurrency’s price movements.Saylor described Bitcoin’s volatility as an inherent feature of digital capital, saying the asset is structurally more volatile than traditional asset classes such as gold, equities or real estate. He stressed that Bitcoin should be evaluated over multi-year time horizons rather than through short-term price fluctuations, which he said are more relevant for traders.
Financing and market context
Asked about a scenario in which Bitcoin prices remain depressed for an extended period, Saylor said Strategy could refinance its debt instead of selling Bitcoin. According to him, lenders would remain willing to provide financing, as Bitcoin retains value even during deep drawdowns.He also noted that Strategy’s equity is designed to amplify Bitcoin’s price movements, creating additional liquidity and demand for financial instruments backed by the crypto asset. Saylor declined to provide a 12-month price forecast but said he expects Bitcoin to outperform the S&P 500 over a four- to eight-year horizon.
At the time of publication, Bitcoin was trading near $69,000, while Strategy shares were around $135 in premarket trading. The company recently disclosed the purchase of 1,142 BTC for about $90 million between Feb. 2 and Feb. 8, bringing total holdings to roughly 714,644 BTC.
Previously, Citigroup recommended buying Strategy shares despite Bitcoin’s volatility.
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