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Amid a surge of anxiety in crypto markets, speculations emerged on Friday that Strategy (MSTR) was offloading its bitcoin assets as both BTC and MSTR shares dropped.
Executive Chairman Michael Saylor swiftly dismissed the speculation, stating to CNBC, “We are acquiring bitcoin,” and assuring that the firm’s forthcoming acquisitions will be disclosed on Monday. He noted that Strategy is “intensifying [its] acquisitions” and hinted that investors may be “pleasantly astonished” by the recent developments.
The speculations originated from on-chain transactions indicating BTC exiting company-controlled wallets, coinciding with a brief dip in bitcoin to below $95,000, its lowest mark in roughly six months.
However, Saylor reassured his confidence, asserting, “There is no validity to this speculation.”
MSTR shares dropped beneath $200 in pre-market and early trading, down nearly 35% year-to-date, raising worries that the company might sell off bitcoin to stabilize its financial position.
Saylor urged investors to keep perspective amid the fluctuations. “Widen your view,” he remarked, pointing out that bitcoin was valued in the $55,000-$65,000 range just over a year ago. Even with recent downturns, BTC at $95,000 “still represents an impressive return.”
He further stated that Strategy has “established a robust support base around here” and expressed confidence that bitcoin could rebound from current levels.
Strategy currently possesses over 641,000 BTC, valued at approximately $22.5 billion, with an average acquisition cost of around $74,000 per coin. The company’s market capitalization has dipped below the valuation of its bitcoin assets, driving its market-to-net-asset value (mNAV) below 1, a metric often cited as proof that the stock might be undervalued.
In spite of these figures, Saylor stressed that Strategy’s financial position is “quite stable” and only minimally leveraged, with no imminent conditions for debt triggers.
Bitcoin remains a wise investment
Regarding long-term prospects, Saylor maintained a positive outlook, asserting, “Bitcoin is consistently a wise investment,” as long as investors are ready for volatility and hold a time frame of at least four years.
He drew comparisons between BTC’s performance and traditional assets, noting that bitcoin has averaged roughly 50% annual growth over the past five years, surpassing gold and the S&P.
He also differentiated investment strategies, suggesting that those interested in exposure to digital credit instruments might opt for alternative products, while investors seeking long-term ownership of “digital capital” should concentrate on bitcoin.
Even while market unease persists and institutional outflows affect prices, Strategy is doubling down. “We’re consistently acquiring,” Saylor stated, indicating that the firm plans to capitalize on market declines to expand its bitcoin assets rather than divest.
Saylor: Trillions in Bitcoin
In a comprehensive interview with Bitcoin Magazine earlier this year, Saylor described an ambitious objective to create a trillion-dollar Bitcoin balance sheet, utilizing it as a foundation to transform global finance.
He foresees amassing $1 trillion in Bitcoin and enhancing it by 20–30% annually, leveraging long-term appreciation to establish a substantial reserve of digital collateral.
From this foundation, Saylor intends to issue Bitcoin-backed credit at yields considerably exceeding traditional fiat systems, potentially 2–4% above corporate or sovereign debt, providing safer, over-collateralized alternatives.
He believes this could rejuvenate credit markets, equity indexes, and corporate financial sheets while generating new financial products, including higher-yield savings accounts, money market funds, and insurance solutions denominated in Bitcoin.
Earlier this week, Strategy acquired 487 BTC for about $49.9 million. At the time of the announcement, Bitcoin’s price was close to $106,000. The acquisitions, made between November 3 and 9 at an average of $102,557 per BTC, raise Strategy’s total holdings to 641,692 BTC, obtained for roughly $47.54 billion at an average price of $74,079 each, highlighting the company’s unwavering commitment to its Bitcoin treasury strategy.
At the time this was written, Bitcoin is traded at $96,815, with lows recorded near $94,000.
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