Is Bitcoin's volatility a bug or a feature? Michael Saylor, the CEO of Strategy, seems to think it's the latter, brushing aside concerns about his company's debt even if Bitcoin plummets.
Saylor's Bold Stance on Bitcoin
Michael Saylor, CEO of Strategy, isn't sweating over Bitcoin's price swings. He stated that he plans to keep buying Bitcoin every quarter. "If bitcoin falls 90% for the next four years, we'll refinance the debt," Saylor said on CNBC's "Squawk Box," adding, "We'll just roll it forward."When asked if banks would continue lending to Strategy if Bitcoin collapses, Saylor responded, "Yeah, because the volatility of bitcoin is such that it's always going to be a value." As of Tuesday, Bitcoin was trading at $68,970.45, a 9% decrease over five days.
Strategy's Bitcoin Strategy
Strategy has a significant amount of debt, with over $8 billion on its balance sheet, partly from issuing convertible notes (a type of debt that can be converted into stock) to buy Bitcoin. Despite this, Saylor dismissed any thought of selling their Bitcoin holdings. He anticipates continuing to purchase Bitcoin every quarter indefinitely.According to their website, Strategy holds 714,644 Bitcoins. Saylor also pointed out that his company has two-and-a-half years' worth of cash to cover dividends.
Even if Bitcoin fell to $8,000, Saylor said the company would simply refinance. He doesn't believe Bitcoin is going to zero.
