Amid a wave of panic in the crypto markets, rumors surfaced on Friday that Strategy (MSTR) was selling its bitcoin holdings, as both BTC and MSTR stocks plummeted.
Executive Chairman Michael Saylor quickly dismissed the chatter: narrate CNBC: “We’re buying bitcoin,” promising the company’s next purchases will be reported on Monday. He added that the strategy is “accelerating [its] purchases” and suggested that investors could be “pleasantly surprised” by the recent activity.
The rumors stemmed from on-chain moves that showed BTC leaving company-controlled portfolios, coinciding with bitcoin’s brief dip below $95,000, its lowest level in about six months.
However, Saylor maintained confidence and said: “There is no truth to this rumor.”
MSTR shares fell below $200 in pre-market and early trading, down nearly 35% since the start of the year, raising concerns that the company could liquidate bitcoin to stabilize its balance sheet.
Saylor advised investors to keep perspective despite the volatility. “Zoom out,” he said, noting that bitcoin was trading between $55,000 and $65,000 just over a year ago. Even after recent declines, BTC is still showing quite good returns at $95,000.
He added that Strategy “has created a pretty strong base of support here” and expressed comfort that bitcoin could recover from current levels.
Strategy now owns over 641,000 BTC, worth approximately $22.5 billion, with an average purchase price of approximately $74,000 per coin. The company’s market capitalization has fallen below the value of its bitcoin holdings, pushing its market-to-net asset value (mNAV) below 1, a measure often cited as evidence that the stock may be undervalued.
Despite these figures, Saylor emphasized that Strategy’s balance sheet is “pretty stable” and only fractionally funded, with no looming debt triggers.
Bitcoin is always a good investment
As for the long-term prospects, Saylor remained optimistic, stating: “Bitcoin is always a good investment,” provided investors are prepared for volatility and maintain a time horizon of at least four years.
Comparing BTC’s performance to traditional assets, he noted that Bitcoin has averaged annual growth of about 50% over the past five years, outperforming gold and the S&P.
He also contrasted investment approaches, suggesting that those seeking exposure to digital credit instruments might prefer other products, while investors seeking long-term ownership of ‘digital capital’ should focus on bitcoin.
Even as market jitters continue and institutional outflows impact prices, the strategy is doubling down. “We’re always buying,” Saylor said, indicating the company plans to use market dips to grow its bitcoin holdings rather than sell.
Saylor: Trillions in Bitcoin
In an extensive interview with Bitcoin Magazine Earlier this year, Saylor outlined an ambitious vision to build a trillion-dollar Bitcoin balance sheet, and use it as a foundation to reshape global finance.
He envisions accumulating $1 trillion in Bitcoin and growing it at 20 to 30% annually, leveraging long-term appreciation to create a huge stock of digital collateral.
From this foundation, Saylor plans to issue Bitcoin-backed credit at yields significantly higher than traditional fiat systems, potentially 2 to 4% above corporate or sovereign debt, offering safer, over-leveraged alternatives.
He expects this could revive credit markets, stock indexes and corporate balance sheets while creating new financial products, including higher-yield savings accounts, money market funds and insurance services in Bitcoin.
Earlier this week, Strategy bought 487 BTC for approximately $49.9 million. At the time of announcement, Bitcoin’s price was almost $106,000. The purchases, made between November 3 and 9 at an average of $102,557 per BTC, bring Strategy’s total holdings to 641,692 BTC, acquired for approximately $47.54 billion at an average price of $74,079 each, underscoring the company’s continued commitment to its Bitcoin treasury strategy.
At the time of writing, Bitcoin is trading at $96,815, with lows near $94,000.
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