Michael Saylor: The Bitcoin Decline Does Not Affect Us

Recently, the sharp pullback in Bitcoin's price has raised concerns among investors, while Michael Saylor, the CEO of Strategy company, stated that they are prepared for such declines. In a statement to Fox Business, Saylor emphasized that there is no reason for panic, arguing that Bitcoin has evolved into a more stable asset over the years.

He noted that when they started buying Bitcoin in 2020, the annual volatility was around %80, but this rate has decreased to about %50 today. According to the famous executive, Bitcoin is transforming into a structure with 1.5 times the performance and 1.5 times the volatility level compared to the S&P 500, as it reduces its volatility every few years. This situation draws attention as a significant development in terms of Bitcoin's market dynamics.

Saylor mentioned that the company's portfolio consists of 649,870 Bitcoin, which had a value of 59.59 billion dollars at the time of the report. However, the Strategy company's mNAV multiplier has dropped from 1.52 to 1.11 after Bitcoin's peak price of 125,100 dollars. Additionally, the MSTR stock has closed at 206.80 dollars, down %11.5 in the last five days.

Saylor expressed that he is not worried even in the event of a much more severe drop in Bitcoin, stating that the company's structure is designed to withstand such a loss of value and that they are prepared for a decline of between 80 to 90 percent. He also added that the company's leverage is at a solid point, providing a strong foundation in terms of risk management.

On the other hand, renowned investor Peter Brandt warned that the Bitcoin chart has evolved into a structure similar to the soybean bubble of the 1970s and that the Strategy company could be at risk of losses under this scenario. However, Saylor's statements once again demonstrate his long-term belief in Bitcoin.