Michael Saylor Calms Fears Over Bitcoin’s DAT Crash
Michael Saylor, the Chairman of MicroStrategy, has addressed rising concerns regarding the recent decline in Digital Asset Treasury (DAT) stocks. In a recent interview, Saylor maintained a confident outlook despite Bitcoin’s market volatility.
Market Volatility or Opportunity?
Saylor emphasized that the current fluctuations in the cryptocurrency market should be viewed as opportunities rather than crises. He believes this volatility is a key driver behind Bitcoin’s potential for high performance. Saylor remarked that “If Bitcoin wasn’t volatile, it probably wouldn’t be high performance,” indicating his belief in its inherent value.
MicroStrategy’s Strong Position
Despite a 41% drop in MicroStrategy’s share price year-to-date, the company holds substantial assets. With about 649,870 Bitcoins in its portfolio, Saylor reported unrealized profits totaling approximately $6.1 billion. This strong position underscores MicroStrategy’s commitment to its Bitcoin strategy.
Investment Horizon and Rejection of Liquidation Fears
Saylor advised investors in both Bitcoin and MSTR shares to adopt a minimum investment horizon of four years, ideally ten years. He dismissed liquidation fears, stating that the company’s dividend obligations constitute “one of one basis point” of daily Bitcoin trading volume, which he described as a mere “rounding error.”
Concerns regarding potential exclusion from major financial indices like MSCI or NASDAQ 100 were also downplayed by Saylor. He argued that market forces would naturally allocate capital regardless of such indices.
Competitors Under Pressure
While prominent DAT competitors, such as FG Nexus and BitMine, face significant challenges with billions in unrealized losses, MicroStrategy remains resolute in its acquisition strategy. Recently, the company invested $830 million in Bitcoin, showcasing its long-term commitment to the asset.
Saylor reassured stakeholders of MicroStrategy’s sustainability, asserting, “We have capital for the next 70 years,” even in the absence of Bitcoin price appreciation. He characterized current market turmoil as “noise” that will eventually settle, reflecting a steadfast confidence in the long-term viability of Bitcoin amidst market fluctuations.
