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.
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.
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.
Consider that Strategy's stock fell about 2% as Bitcoin dipped below $70,000, showing a direct correlation.
Be aware that Strategy's stock has already fallen over 40% in the last three months, reflecting Bitcoin's volatility.
Note that Strategy's commitment to buying Bitcoin every quarter, regardless of price, could further tie the company's fate to the cryptocurrency's performance, impacting shareholder value.
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