As fears circulate in the cryptocurrency market, a wave of speculation arose on Friday suggesting that Strategy (MSTR) was liquidating its Bitcoin holdings. This rumor coincided with declines in both Bitcoin (BTC) and MSTR stock prices.
In response, Executive Chairman Michael Saylor swiftly rebuffed these claims during an appearance on CNBC, affirming, “We are buying Bitcoin,” and revealing that the company’s upcoming purchases would be disclosed on Monday. He indicated that Strategy is “accelerating [its] purchases,” hinting that investors might be “pleasantly surprised” by their recent activities.
These speculations were fueled by observable on-chain movements showing Bitcoin being moved from company-controlled wallets. This activity happened alongside a momentary dip in Bitcoin prices falling below $95,000, marking its lowest point in approximately six months. Nevertheless, Saylor remained steadfast, insisting, “There is no truth to this rumor.”
Amidst the turmoil, MSTR shares plunged below $200 during pre-market and early trading, falling nearly 35% year-to-date, which led to concerns about the company potentially liquidating its Bitcoin assets to improve its balance sheet. Saylor urged investors to take a broader view amidst the market’s fluctuations. “Zoom out,” he remarked, recalling that Bitcoin was trading between $55,000 and $65,000 just over a year ago. Even with the recent downturns, he emphasized that Bitcoin at $95,000 “still represents a pretty great return.”
He also suggested that Strategy has established a “pretty strong base of support around here,” expressing optimism that Bitcoin could recover from its current status.
Currently, Strategy holds more than 641,000 BTC, valued at approximately $22.5 billion, with an average purchase price around $74,000 per coin. However, the company’s market capitalization has dipped below the total value of its Bitcoin holdings, resulting in its market-to-net-asset value (mNAV) falling below 1, a statistic often interpreted as a signal of potential undervaluation.
Despite these developments, Saylor painted a picture of a “pretty stable” balance sheet for Strategy, emphasizing that it remains only lightly levered and free from any imminent debt triggering events.
The Long-Term Outlook on Bitcoin
On the subject of Bitcoin’s future prospects, Saylor was emphatically optimistic, asserting, “Bitcoin is always a good investment,” especially for those who can withstand volatility and commit to a holding period of at least four years. He highlighted Bitcoin’s performance over traditional assets, noting that it has averaged roughly 50% annual growth over the past five years, significantly outpacing gold and the S&P 500.
Saylor elaborated on investment philosophies, indicating that investors interested in exposure to digital credit instruments may consider other financial products, while those looking for long-term ownership of “digital capital” should focus their efforts on Bitcoin.
Even as market uncertainty persists and institutional outflows impact prices, Strategy remains resolute. “We’re always buying,” Saylor reiterated, conveying the firm’s intention to leverage market downturns as opportunities to bolster its Bitcoin holdings rather than divest.
Saylor’s Vision of a Bitcoin-Backed Finance System
In a comprehensive interview with Bitcoin Magazine earlier this year, Saylor laid out an ambitious goal to construct a trillion-dollar Bitcoin balance sheet aimed at transforming global finance. He aims to accumulate $1 trillion in Bitcoin, growing it at an annual rate of 20–30%. This long-term appreciation strategy is designed to establish an extensive store of digital collateral.
From this foundation, Saylor envisions a new avenue for issuing Bitcoin-backed credit with yields surpassing traditional fiat options by 2–4%, offering safer, over-collateralized financial alternatives. He predicts that this could rejuvenate credit markets, equity indices, and corporate finances, while also leading to the creation of novel financial products—such as higher-yield savings accounts, money markets, and insurance services denominated in Bitcoin.
Just recently, Strategy acquired 487 BTC for approximately $49.9 million. At the time of this announcement, Bitcoin’s price hovered near $106,000. These transactions, which took place between November 3 and 9 at an average price of $102,557 per BTC, raised Strategy’s total Bitcoin holdings to 641,692 BTC, acquired for around $47.54 billion at an average cost of $74,079 each. This echoes the company’s unwavering commitment to its Bitcoin treasury strategy.
As of now, Bitcoin is trading at $96,815, with lows recorded near $94,000.
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