Michael Saylor downplays Strategy credit risk as bitcoin tumbles: ‘We’ll refinance the debt’

Strategy CEO Michael Saylor remains unfazed by concerns about the company’s credit risk amidst Bitcoin’s recent price fluctuations. In fact, Saylor has announced plans to continue accumulating the cryptocurrency for the company every quarter, regardless of market conditions.

In a recent interview on CNBC’s “Squawk Box,” Saylor confidently stated, “If bitcoin falls 90% for the next four years, we’ll refinance the debt. We’ll just roll it forward.” He expressed confidence that banks would continue to lend to the digital asset treasury firm even in the event of a significant Bitcoin collapse, citing the inherent value and volatility of the cryptocurrency.

Despite Bitcoin’s recent dip in price, currently trading at $68,970.45 with a 9% decrease over the past five days, Saylor remains committed to his strategy. Strategy currently holds 714,644 bitcoins, valued at approximately $49 billion, making it the largest corporate owner of the digital asset. Saylor emphasized that the company has two-and-a-half years worth of cash on its balance sheet to cover dividends, ensuring financial stability.

Addressing concerns about selling off digital asset holdings, Saylor dismissed the idea, stating, “I expect we’ll be buying bitcoin every quarter forever.” This unwavering commitment to accumulating Bitcoin sets Strategy apart as a pioneer in corporate cryptocurrency investment.

Despite a 2% drop in Strategy’s stock price following Bitcoin’s decline below $70,000, the company remains steadfast in its long-term investment strategy. With a total debt of over $8 billion on its balance sheet, partly attributed to the issuance of convertible notes used to purchase Bitcoin, Strategy’s bold approach to cryptocurrency investment continues to attract attention from investors and industry experts.

In conclusion, Strategy’s CEO Michael Saylor’s resolute stance on Bitcoin investment reflects a bold and innovative approach to corporate treasury management. With a clear vision for the future and a strong belief in the long-term value of Bitcoin, Strategy is poised to maintain its position as a leader in the evolving landscape of digital asset investment.