Saylor Addresses Market Speculation
Michael Saylor, the executive chairman of MicroStrategy, appeared on CNBC Friday morning to directly address circulating rumors about his company’s Bitcoin strategy. With both Bitcoin and MicroStrategy’s stock experiencing significant declines, Saylor felt the need to clarify his company’s position. “We are buying bitcoin, we’ll report our next buys on Monday morning,” Saylor stated during the interview. He went on to mention that the company is actually “accelerating [its] purchases,” suggesting that recent wallet activity would reveal aggressive accumulation rather than selling.
The rumors had gained traction earlier Friday when on-chain data showed Bitcoin moving out of company-controlled wallets. This led to speculation that MicroStrategy might be liquidating some of its substantial Bitcoin holdings. Saylor quickly moved to dispel these rumors, taking to social media platform X shortly after his CNBC appearance to state plainly: “There is no truth to this rumor.
Market Context and Investor Concerns
For investors, the selling rumors weren’t entirely without basis. MicroStrategy currently holds more than 641,000 BTC, worth approximately $22.5 billion at current prices. Meanwhile, the company’s market capitalization has fallen below that value, creating an interesting situation where the stock might actually be undervalued relative to its Bitcoin holdings. This gap has pushed MicroStrategy’s market-to-net-asset value (mNAV) below 1, which traditionally suggests the stock could be trading at a discount.
In such circumstances, some might argue that selling a portion of the Bitcoin holdings to stabilize the company could appear rational. The company’s stock was down 4% early Friday and trading below $200, representing a nearly 35% decline year-to-date. Bitcoin itself had recovered from its worst levels but still showed a 5.8% drop over the past 24 hours, trading around $96,200.
Saylor’s Long-term Perspective
When asked about the recent plunge in Bitcoin’s price, Saylor maintained his characteristic long-term perspective. He advised nervous investors to consider the bigger picture, noting that Bitcoin was trading in the $55,000-$65,000 range just over a year ago. Even after the recent decline, Bitcoin at $95,000 still represents substantial gains from those levels.
“We’ve put in a pretty strong base of support around here,” Saylor commented, expressing confidence that Bitcoin could rally from current price levels. His comments reflect the consistent strategy MicroStrategy has maintained since it began accumulating Bitcoin in 2020 – viewing the cryptocurrency as a long-term store of value rather than a short-term trading asset.
The situation highlights the challenges public companies face when their primary asset is as volatile as Bitcoin. Every wallet movement becomes subject to intense scrutiny and speculation. For now, Saylor seems determined to stay the course, continuing the accumulation strategy that has defined his company’s approach to Bitcoin for years.
