Michael Saylor, executive chairman of Strategy, and CEO Phong Le have reiterated their commitment to accumulating Bitcoin (BTC), despite facing substantial unrealized losses. During a recent earnings call, the company reported a staggering $12.4 billion net loss for the fourth quarter, leading to concerns about liquidation risks.
Currently, Strategy holds 713,502 BTC, valued at approximately $45.5 billion at a price point of around $65,000. This represents an unrealized loss nearing $8.5 billion. However, both Saylor and Le expressed confidence in their capital structure and reaffirmed their strategy to continue purchasing more Bitcoin, irrespective of current market conditions.
Le emphasized that liquidations would only be considered if the price of Bitcoin were to fall to $8,000. “Bitcoin needs to go down to $8,000 a coin and sit there for five years up until 2032, before we really have a problem,” he stated, highlighting the company”s ability to satisfy obligations related to convertible notes.
The executives addressed various concerns from equity analysts regarding their Bitcoin holdings and debt management. Analysts from firms such as TD Cowen and Benchmark, as well as industry figures like Tom Lee and Lyn Alden, were present during the call, reflecting the significant interest in Strategy”s financial strategy.
Looking ahead, Strategy plans to issue preferred stock to fund further Bitcoin acquisitions in 2026. According to Le, the company intends to issue more STRC preferred shares, which will offer an 11.25% annual dividend distributed monthly.
In light of recent market volatility, Saylor has urged investors to maintain their positions in Bitcoin despite price fluctuations. He has also launched the Bitcoin Security Program, aimed at collaborating with the global cybersecurity community to address potential threats from quantum computing.
Saylor noted that concerns regarding quantum computing are part of a long-standing narrative of fear, uncertainty, and doubt (FUD) that has surrounded Bitcoin since its inception. This initiative aims to enhance security and prepare Bitcoin for future challenges.
Despite the ongoing downward trend in Bitcoin”s price, which recently fell below $65,000, Saylor remains optimistic. He believes the current downturn is temporary and that the market will eventually recover. As of now, MSTR stock has experienced a significant decline, plummeting more than 17% following the price drop of Bitcoin.
In summary, Strategy is steadfast in its Bitcoin accumulation strategy, with leadership committed to buying more coins while managing existing holdings effectively.
