Michael Saylor Highlights Strength of Bitcoin Treasury as Asset Reserves Now Exceed Total Debt
Michael Saylor Defends Strategy’s Bitcoin Plan as Asset Reserves Now Far Exceed Debt
Strategy co-founder Michael Saylor has once again reaffirmed confidence in the company’s Bitcoin accumulation strategy amid criticism over its continued BTC purchases through company-backed financial instruments.
In a post on X, Saylor revealed that Strategy’s combined Bitcoin (BTC) holdings and U.S. dollar reserves now exceed the company’s total debt by around $48 billion. He also noted that since 2022, the company has raised more than $60 billion in additional capital, which has largely been allocated to buying Bitcoin.
Saylor compared the company’s current position to the difficult conditions it faced in 2022. At that time, Bitcoin was trading near $20,000, while Strategy held approximately 130,000 BTC, valued at around $2.6 billion.
However, when BTC later dropped below $16,000, the company’s total debt temporarily exceeded the combined value of its Bitcoin holdings and cash reserves. During the same period, MSTR stock also plunged from around $24 to roughly $13 by the end of the year. Despite the market pressure, Strategy chose not to sell any of its Bitcoin.
His comments come as the company faces growing criticism over its model of raising capital by selling MSTR shares and a newer financial instrument called STRC to fund additional Bitcoin purchases.
Recently, STRC shares fell to a record low near $83, marking a significant decline from its original $100 value.
Bitcoin critic Peter Schiff even suggested the possibility of investor lawsuits against Strategy and Michael Saylor, arguing that Saylor may have violated SEC regulations regarding how the STRC product has been promoted.
On the other hand, several figures in the crypto industry have defended Saylor. David Gokhshtein, a contributor for Fox News and Sky News, argued that Bitcoin’s current market price cannot be blamed on one individual.
He also dismissed comparisons between Saylor and Terraform Labs founder Do Kwon as exaggerated. Earlier, crypto analyst Ali Martinez had compared STRC to the collapsed Terra Luna project from 2022.
Meanwhile, Bitcoin advocate Samson Mow also defended Strategy, calling STRC a well-designed financial instrument as long as investors remain confident that Bitcoin’s value will continue rising over the long term.
