American entrepreneur and Billionaire business executive Michael Saylor has disclosed that his company, MicroStrategy is structurally prepared to survive any massive Bitcoin downturn.
Speaking in an interview with Grant Cardone, Saylor outlined the stress limits of MicroStrategy’s balance sheet and emphasized that a collapse in BTC would not force the firm to liquidate its holdings.
He explained that, with roughly $8 billion in debt and tens of billions in equity tied to Bitcoin, the company could withstand a decline of up to 90% before its collateral levels become tight. Even in such a severe scenario, he noted that the firm would turn to equity dilution before selling its Bitcoin. “The equity is going to be a loser,” he said, underscoring that shareholders, not BTC reserves, would absorb the blow.
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He insisted that liquidation is not an option in any realistic downturn. When asked if MicroStrategy could ever be compelled to unwind its Bitcoin position, Saylor said, “We’re not going to liquidate.” Only if Bitcoin collapsed to zero, a total and permanent disappearance of value would bondholders face default risk”. As he summarized, “If Bitcoin fell to zero tomorrow forever, then the bonds would default.
Peter Schiff, a prominent gold advocate and Bitcoin critic, has recently criticised Strategy’s model, highlighting the risks in it. Schiff believes that MSTR’s entire business model is a fraud and has also challenged Saylor to debate him on this claim.
In a post on X, he wrote,
“MSTR’s entire business model is a fraud. Saylor and I will both be speaking at Binance Blockchain Week in Dubai in early December. I challenge @saylor to debate this proposition with me. Regardless of what happens to Bitcoin, I believe $MSTR will eventually go bankrupt. Let’s go!”.
Regardless of Bitcoin’s future, Schiff is convinced that Strategy will end up bankrupt. This comes as Bitcoin continues its dip below the $100,000 mark, currently trading at $95,749 at the time of writing this report. It is down 10% over the past week. Strategy’s stock also continues to face volatility amidst the recent downturn. It is currently trading at $199.75, down over 50% in the past 6 months.
US spot Bitcoin exchange-traded funds (ETFs) closed a third straight week in the red, deepening concerns that one of Bitcoin’s biggest institutional demand engines is stalling. Spot Bitcoin ETFs saw $1.1 billion in net negative outflows during the past trading week, marking their fourth-largest week of outflows on record, according to Farside Investors data. The ETF outflows occurred during a significant correction, as Bitcoin’s price fell by over 9.9% during the past week, to trade at $95,740 at the time of writing.
Amidst Bitcoin’s recent downward price action, Saylor has hinted in a recent post on X that the company has a “big week” ahead, suggesting that more Bitcoin purchases may be on the way. In a recent interview with CNBC, he said that the announcement would be “pleasantly” surprising. The Virginia-headquartered business intelligence firm remains the largest corporate Bitcoin holder by a huge margin, with a total of 684,412 BTC.
As bulls scan the horizon for signs of Bitcoin price direction, Saylor has predicted that the asset will end the year on a high note. The billionaire entrepreneur eyes $150,000 price by the end of 2025.