Strategy Built to Survive 90% Bitcoin Drop, Says Saylor

Michael Saylor, Executive Chairman of MicroStrategy (MSTR), asserts that the company is prepared to endure a significant downturn in Bitcoin prices without liquidating its holdings. In an interview, he mentioned:

MicroStrategy can withstand a 90% drop in Bitcoin value before facing collateralization issues.
The company's equity holders would be the primary buffer in such a scenario, potentially leading to equity dilution rather than liquidation.
Liquidation of Bitcoin positions is not considered even in bear market conditions.
If Bitcoin's value drops to zero, bond defaults would occur, but this scenario is deemed unlikely.

Saylor also dismissed the relevance of the four-year Bitcoin halving cycle as a key driver of price, stating:

The impact of supply reduction from halvings is minimal compared to the influence of macroeconomic and institutional factors.
The market dynamics are more influenced by major financial actors and economic policies, such as interest rate decisions by central banks.

At the time of reporting, Bitcoin was trading at $95,624.

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