Michael Saylor says he is not worried about Strategy’s credit risk even as bitcoin keeps sliding. He said the company has already planned for ugly markets. Prices can drop hard and stay low, and the company will still keep going. The plan is simple:- If Bitcoin collapses for years, the debt gets refinanced and pushed forward.
Saylor spoke as bitcoin traded around $68,970, down 9% in five days. The token fell as low as $60,062, the weakest level in roughly 16 months. At that point, it was down more than 50% from its record. Despite that, Saylor said the company will keep buying bitcoin every single quarter and will not sell any of what it already owns.
Saylor lays out refinancing plan as debt stays high
Michael Saylor, the co-founder and executive chairman, said on CNBC that even a brutal collapse would not change the plan. “If bitcoin falls 90% for the next four years, we’ll refinance the debt. We’ll just roll it forward,” Saylor said.
When asked if banks would still lend under that scenario, he answered yes and pointed to bitcoin volatility as a reason lenders stay interested. He said volatility does not kill value.
Strategy carries more than $8 billion in total debt. A large part came from convertible notes used to buy Bitcoin. The company now holds 714,644 bitcoins, worth about $49 billion, making it the largest corporate holder of the asset. Saylor said the firm expects to keep buying bitcoin every quarter forever and does not plan to sell any holdings.
He also said the company has about two and a half years of cash on the balance sheet to cover dividends. Later, he said Strategy faces no margin calls and has $2.25 billion in cash, enough to pay interest and distributions for more than two years. Still, pressure is rising as bitcoin trades below the firm’s $76,052 average cost.
Losses deepen as volatility drops and investors turn defensive
The numbers are getting worse on paper. In its latest earnings release, Strategy reported a $12.4 billion net loss for the fourth quarter. The loss came from mark-to-market declines in its bitcoin holdings, as Cryptopolitan reported.
This week, further market stress pushed the value of Strategy’s stash below its total purchase cost for the first time since 2023, wiping out gains made after the election.
The company also said it does not expect to generate earnings or profits this year or in the near future. Based on that outlook, Strategy said any distributions to holders of its perpetual preferred shares are expected to be tax-free for now. The stock fell about 2% on Tuesday as bitcoin broke below $70,000 again. Shares are down more than 40% over the past three months.
Market signals show caution. Bitcoin implied volatility dropped from about 83% to near 60%, pointing to lower expectations for sharp swings. At the same time, options traders remain defensive. The 25 delta call put skew stays tilted toward puts, showing demand for downside protection.
During the earnings call, Chief Executive Officer Phong Le told recent buyers to stay patient. “Some of you bought Bitcoin or MSTR in the last year, this is your first downturn, my advice is to hold on,” Phong said. His comments triggered angry reactions in the livestream chat.
For the past four years, Strategy acted as a high beta proxy for bitcoin. Shares jumped more than 3,500% between 2020 and 2024.
That rise came through equity sales and debt, and it also turned the firm into a target for critics of leveraged crypto exposure. Saylor has made clear that criticism will not change the plan.
