Key Takeaways
- Strategy’s Bitcoin bet has turned negative as prices fall below its average cost.
- Critics argue that Strategy’s reduced ability to keep buying Bitcoin is removing a major source of price support.
- Saylor remains firmly bullish despite the drawdown.
Michael Saylor reiterated his refusal to sell Bitcoin on Monday, even as Strategy’s vast BTC holdings fell below their average purchase price, drawing renewed criticism from market commentators who argue the company’s ability to support Bitcoin’s price is waning.
Bitcoin’s latest decline has pushed the token below Strategy’s estimated cost basis of about $76,037, leaving the firm’s holdings underwater and intensifying scrutiny of Saylor’s debt- and equity-funded accumulation strategy.
Strategy’s Bitcoin Price Position Turns Negative
Strategy has accumulated more than 712,000 bitcoins since 2020, financing purchases largely through share issuance and convertible debt.
The approach allowed the company to steadily expand its holdings during Bitcoin’s long bull market, but recent price weakness has reversed much of that paper gain.
According to market estimates cited by commentators, Strategy is now roughly $630 million underwater on its Bitcoin position, erasing tens of billions of dollars in unrealized gains recorded earlier this year when Bitcoin was trading near record highs.
While Bitcoin remains up more than 500% from the time Saylor began buying in August 2020, Strategy’s overall return has narrowed to roughly flat.
Critics Question the Sustainability of Strategy’s Model
Bitcoin’s price downturn has emboldened long-time critics of both Bitcoin and Strategy’s approach.
Jacob King, a famed Bitcoin critic, said in a post on X that Strategy’s losses have effectively wiped out the firm’s earlier unrealized profits, arguing that aggressive buying near the top has left shareholders exposed as prices retreat.
Fellow Bitcoin critic Peter Schiff went further, claiming Strategy’s purchases themselves played a significant role in driving Bitcoin’s earlier surge, and that reduced buying power is now contributing to the decline.
“Strategy’s Bitcoin purchases are one of the main reasons Bitcoin’s price rose 550%,” Schiff wrote on X.
“But now that Strategy can’t keep buying as much, the price is falling.”
Schiff added that Bitcoin would not reach a durable bottom, in his view, until Strategy eventually sells its holdings — a scenario Saylor has repeatedly dismissed.
Michael Saylor Maintains Bullish Stance
Saylor, as has come to be expected, responded to the backlash with bullish posts on X.
In a post on X on Tuesday, he restated what he called “The Rules of Bitcoin,” writing:
“1. Buy Bitcoin.
“2. Don’t Sell the Bitcoin.”
In a separate message, Saylor characterized sharp price swings as an inherent part of Bitcoin’s design, calling volatility “Satoshi’s gift to the faithful.”
Speaking at the Bitcoin MENA conference in December, Saylor previously said Strategy’s equity-based structure has already broadened access to Bitcoin well beyond direct crypto ownership, arguing that millions of investors now have exposure to the asset through the company’s shares.
“We have somewhere in the range of 15 million beneficiaries,” Saylor said, referring to Strategy shareholders that include pension funds, institutions and retail investors.
He added that the number could rise substantially in coming years.
“We have delivered Bitcoin interest to 15 million people, and that will double to 100 million people over the next few years,” he said.
Bitcoin Price To $1 Million
Saylor also said Bitcoin’s value could surge dramatically if Strategy’s share of the network grows.
“If we’re lucky enough, if we ever get to 5% of the network, Bitcoin’s going to be at least a million coins,” Saylor said.
“And if we ever get to 7.5% of the network, Bitcoin will be 10 million coins.”
He also added that corporate investment is essential for Bitcoin to scale toward a multi-trillion-dollar asset class.
“We really represent a motor, and we’re powering the network up. We’re driving the price of Bitcoin up from $10,000 to $100,000 or $1 million to $10 million,” he said.
Saylor added that without Strategy’s equity and credit instruments providing institutional on-ramps, “Bitcoin would probably be trading at $10,000 a coin right now.”
Kurt Robson is a London-based reporter at CCN, specialising in the fast-moving worlds of crypto and emerging technology. He began his career covering local news in Cornwall after graduating from Falmouth University with First Class Honours in Journalism. There, he cut his teeth on everything from council meetings to missing swans.
He quickly rose through the ranks to become a frontline journalist at several of the UK’s leading national newspapers. Over the years, he has interviewed musicians and celebrities, reported from courtrooms and crime scenes, and secured multiple front-page exclusives.
Following the upheaval of the COVID-19 pandemic, Kurt shifted his focus to technology journalism—just ahead of the AI boom. With a natural curiosity and a trained eye for emerging trends, he has found a new rhythm in reporting on innovation.
At CCN, Kurt's work focuses on the cutting edge of crypto, blockchain, AI, and the evolving digital world. Drawing on his background in people-first reporting and his deep interest in disruptive tech, Kurt delivers stories that are insightful, entertaining, and human-centric.
