Michael Saylor: Bitcoin will continue to execute the strategy even if it falls by 90%.

Source: BTCHaber Original Title: Michael Saylor: “BTC would continue on its strategy even if it drops by 90%” Original Link: Michael Saylor, the chairman and CEO of Strategy, is a well-known Bitcoin extremist who recently addressed market concerns in a television interview.

During the live broadcast, when asked whether the market downturn would change Bitcoin's value proposition, Saylor candidly stated: "You know Bitcoin has been around for 15 years. So far it has experienced 15 significant declines. Each time it returned to a new all-time high. If you take a step back, this is just normal. " He added: “This is normal in the lifecycle of an emerging transformative asset class. It's healthy. This process clears out short-term investors, leveraged positions, and weak hands, laying the foundation for the next round of increases.”

Bitcoin Volatility Decreases

Fox Business host asked Saylor if he expects Bitcoin's exposure to Wall Street to reduce volatility and whether this would be beneficial. Saylor pointed out that volatility is indeed decreasing and explained: “When I entered this space in 2020, Bitcoin was an asset with an annual growth rate of about 80% and a volatility of 80 percentage points. Over time, it has decreased to 70, then 60, and now it is at 50. I believe that every few years, volatility will decrease by another 5 percentage points. As Bitcoin matures, it is developing into an asset that is about 1.5 times more volatile than the S&P index and performs 1.5 times better.”

The companies with the strongest capital in the industry

The interview also discussed Strategy's business model of purchasing Bitcoin through lending. In response to the question “Why do some people think your business model will collapse?”, Saylor replied: “You know, the company's value has increased by about 70% over the past five years. Bitcoin has grown by about 50% over the past five years. So in fact, we are one of the best-performing companies in the S&P index, possibly on par with NVIDIA.”

Saylor claims that they are the most capitalized company in the crypto ecosystem, adding: “We have over $50 billion in equity and are a center of financial power. Our stock has billions of dollars in liquidity every day, and the liquidity of our credit instruments is 100 times higher than average preferred stock. So our approach is to raise capital by selling digital credit or stock, and then invest it in digital capital Bitcoin.”

Powerful Business Model

Saylor expects Bitcoin's value to grow by about 30% over the next 20 years. He explained: “The credit tools we provide offer about a 10% dividend yield in the form of capital returns, thus providing tax-deferred income. So this is a quite powerful business model. If you do the math: even if Bitcoin only grows by 1.25% per year, the company can pay dividends forever and create more shareholder value.”

What will happen if Bitcoin falls further?

When the host asked, “What will happen if Bitcoin falls further? Will there be a chain reaction?” Saylor replied: “The company's design can withstand a decline of 80%-90% and continue to operate, so I believe we are in a fairly unassailable position. Our leverage is about 10%-15%, and it is currently being reduced to zero. This is extremely, extremely robust.”

Disclaimer: This article does not constitute investment advice or recommendations. All investments and trades carry risks, and readers should conduct their own research before making any decisions.