MicroStrategy Founder Saylor Predicts Bitcoin Long-Term Returns Will Be 2 to 3 Times the S&P 500, Reiterates Quarterly Bitcoin Purchases and No Sales. Currently Holds Over 710,000 Coins, Only At Risk if Price Drops to $8,000.
MicroStrategy Founder Pledges Not to Sell Bitcoin
Although Bitcoin ($BTC) recently fell below $70,000, MicroStrategy (Strategy, stock ticker MSTR) founder Michael Saylor reaffirmed his confidence in Bitcoin’s long-term performance during an interview with CNBC yesterday (2/10).
Michael Saylor predicts that within the next four to eight years, Bitcoin’s performance will be two to three times that of the S&P 500. Volatility is part of Bitcoin’s appeal, and investors with a long-term perspective should focus on performance over short-term fluctuations.
He also dismissed market concerns that MicroStrategy might be forced to sell Bitcoin under price pressure, clearly stating that the company will not sell and plans to continue buying Bitcoin each quarter.
MicroStrategy Buys 1,142 More Bitcoins
On Monday, MicroStrategy disclosed that it recently purchased approximately $90 million worth of 1,142 Bitcoin, bringing its total Bitcoin holdings to 714,644 coins, representing over 3.4% of the total fixed supply of Bitcoin.
According to data on their website, MicroStrategy’s current average cost (Avg Cost) for Bitcoin is $76,056, while the acquisition cost (Acq Cost) is $54,353.
Only a Bitcoin price drop to $8,000 would threaten the balance sheet
In response to questions about the company’s financial stability, MicroStrategy CEO Phong Le recently explained to investors that only if Bitcoin’s price crashes about 90% to around $8,000 and remains at that low level for five to six years would the company’s balance sheet face serious stress.
Le also reiterated during the Q4 earnings call that MicroStrategy’s strategy is designed for the long term, capable of withstanding short-term price volatility, even in extreme market conditions like recent times.
Although MicroStrategy reported a net loss in Q4 due to unrealized losses on digital asset holdings, it emphasized that its financial structure is responsibly planned to endure difficult quarters or even multi-year cycles.
Selling Bitcoin as a Last Resort if Two Conditions Are Met
While Michael Saylor insists on “never selling,” CEO Phong Le revealed at the end of last year that the company might consider selling Bitcoin if two conditions are met:
- MicroStrategy’s mNAV (market value net asset value) falls below 1, meaning the company’s market cap is less than the value of its Bitcoin holdings.
- MicroStrategy is unable to raise new capital through stock or debt issuance, facing a closed capital market or prohibitively high financing costs.
Le explained that if these situations occur, selling Bitcoin would be a rational choice to protect per-share Bitcoin earnings based on logical calculations. However, he emphasized that selling would be a last resort, and the company’s policy remains unchanged.
He personally hopes MicroStrategy will not become a Bitcoin-selling company, but in adverse market conditions, financial discipline must take precedence over emotion.
Related article:
Not “Never Sell”! MicroStrategy CEO: Will Consider Selling Bitcoin if mNAV Falls Below 1 and Capital Raising Fails
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Dogecoin Tests $0.090 Support After 3.4% Drop as Traders Watch Key Price Range
Dogecoin is currently trading at $0.09061 which is a drop of 3.4 percent, and the price is close to the important level of $0.09011 support.
The chart indicates a series of tests of the support zone of $0.089-$0.090, and the closest resistance is represented by $0.09353.
A hold of
CryptoNewsLand3h ago
DOGE Price Prediction: Elon Musk Drops X Money News and Dogecoin Immediately Pumps
The Dogecoin price shot up 10% today after Elon Musk announced that X Money early public access starts in April.
DOGE is now trading near $0.0985, just below the key $0.10 level that traders are watching closely.
Musk’s X Money News Sparks Immediate Rally
Where Is the D
CaptainAltcoin6h ago
QUBIC Surges 44.4% Over the Week, Ready to Ascent to the Moon: Expert Analysis
The Qubic (QUBIC) coin has gained attention for its price rise, reaching $0.0696514, driven by strong demand for its decentralized computing solutions. Analysts predict continued growth thanks to increased usage and user activity, with an 85.89% spike in trading volume.
BlockChainReporter9h ago
Bernstein is optimistic about Circle with a 70% increase! The target price is set at $190, with a positive outlook on stablecoins as AI and payment infrastructure.
Wall Street investment firm Bernstein's latest report is bullish on USDC issuer Circle, with a target price of $190 and an expected potential increase of 70%. As stablecoins become more widespread in cross-border payments and future AI applications, Circle is poised to become a key infrastructure for the next generation of online finance. The adoption of stablecoins shows strong growth, especially in the payments sector.
動區BlockTempo9h ago
Chiliz (CHZ) accelerates after positive technical signals, with expectations of reaching a new high
Chiliz (CHZ) is sending notable recovery signals as it trades steadily above the $0.040 USD level at the time of recording on Tuesday. The upward momentum emerged after this altcoin broke out of the (falling wedge) pattern — a technical structure often indicating the potential for a...
TapChiBitcoin11h ago
Bernstein maintains Circle's outperform rating with a target price of $190, indicating a 70% upside potential.
Analyst Bernstein maintains a bullish outlook on stablecoin issuer Circle, with a target price of $190, expecting a 70% increase. The analysis points out that stablecoins are gradually decoupling from the crypto market, with USDC supply rebounding to approximately $78 billion, and the total stablecoin supply reaching $184 billion.
GateNews11h ago
