Saylor backs Bitcoin amid the price drop and says volatility is lower
A brave man shielded by a glowing Bitcoin pushes back a crash from Wall Street's dark powers. Art in 1970s comic book style.
In short
Saylor says Wall Street's move into Bitcoin has not raised its ups and downs. Bitcoin's volatility fell from 80% in 2020 to about 50% now, Saylor claims. Strategy owns 649,870 BTC worth almost $60 billion. MSTR stock dropped 11.5% in five days as Bitcoin fell under $90,000.
Saylor claims Wall Street did not make Bitcoin's drop worse
Michael Saylor speaks plainly. In a Tuesday Fox Business interview, Strategy's executive chairman brushed off worries about Wall Street's role in Bitcoin. He says big finance firms have not hurt the crypto. They have made it steadier.
"We see much less volatility now," he said. Bitcoin's price fell almost 12% in a week. It hit around $90,000. That pullback hit MSTR stock too. It dropped 11.5% in five days.
Saylor uses hard numbers. In 2020, when Strategy started buying Bitcoin in bulk, yearly volatility hit about 80%. Now it sits near 50%.
"Every few years, Bitcoin's volatility drops another five points," he says. He aims for it to match 1.5 times the S&P 500's level. But with 1.5 times better returns.
Many experts see it differently. Some say Bitcoin ties to stock market funds like spot ETFs. That link boosts drops in tough times. Saylor calls that view wrong. "Bitcoin stands stronger than ever," he says.
Firm belief amid the shakes
Strategy holds a huge stash of 649,870 BTC. That totals $59.59 billion. The latest dip hurt its numbers though.
Strategy's market value to Bitcoin assets ratio fell from 1.52x to 1.11x. Investors feel uneasy about the drop.
Saylor stays calm. He says even an 80% to 90% Bitcoin price crash would not sink Strategy. "The firm can take that hit and keep going," he notes.
Smart money setup helps. It skips watering down old shareholders' stakes with preferred shares.
Buying keeps speeding up. Strategy just added 8,178 BTC for $835 million. That boosts its weekly buys by twenty times.
Not everyone agrees. Trader Peter Brandt warns Strategy could drown if Bitcoin acts like the 1970s soybean bubble.
Peter Schiff keeps slamming it. He calls the model a scam. Saylor skips the fights and sticks to the plan.
Saylor's path sharpens talks on Bitcoin's path. Good signs show up. Strategy got a B- from S&P. Banks like JP Morgan test loans backed by BTC. Yet fresh ups and downs fuel doubters. Months ahead will test if this strong faith holds against markets.