Saylor sticks to his guns despite Bitcoin at $59,000

Bitcoin hit $58,000 this week, its lowest level since October 2024, wiping 52% off its all-time high of $126,000. Strategy, Michael Saylor's company, has more than $13 billion in unrealized losses on its 847,363 BTC. Saylor is not changing course. But how long can this model hold up?

An accumulation model put to the test by the fall of Bitcoin

Strategy remains focused on a single thesis: accumulating bitcoin regardless of market conditions. Since 2020, the company has aggressively raised funds to build a stock of over 847,000 BTC, making continued accumulation the pillar of its identity.

Michael Saylor responded directly to shareholder concerns this week: Volatility Tests Any Capital Structure “, he declared, specifying that Strategy would continue to act “with transparency and determination”.

Proponents of the model characterize the current unrealized losses as temporary, building on the precedent of 2022: at the time, Strategy held 130,000 BTC valued at $2.6 billion with a price below $20,000, debt exceeded assets and the stock fell more than 45%. The company had not sold.

CryptoQuant, however, recommends suspending purchases and rebuilding cash reserves first, rather than buying at every fundraising round. Strategy has also increased its dollar reserves to 1.4 billion, a sign that it is monitoring its liquidity.

The STRC under pressure weakens the financing mechanism

Strategy's financial architecture is subject to an unprecedented constraint. Its preferred stock STRC, designed to trade around $100, fell below $89. This decline automatically triggers an increase in the dividend paid to shareholders, increasing Strategy's annual costs by an additional approximately $53 million.

This context mechanically reduces the company's ability to finance new purchases of BTC via this instrument. Additionally, Strategy's mNAV has fallen to 1, a level at which its own policy advises against issuing new MSTR shares to raise funds. Saylor nevertheless recalls that BTC and cash reserves now equal the total debt of $48 billion, with more than $60 billion in capital raised since 2022.

Strategy is going through the most severe test since its conversion to bitcoin in 2020. Record latent losses, weakened STRC, mNAV at 1: financing instruments are under pressure simultaneously.

In this climate, some highly exposed investors preferred to liquidate their positions this week, while others continue to sell their BTC to honor financial commitments. Michael Saylor holds on. The real verdict will not be on the price of bitcoin alone, but on the resilience of the entire financial ecosystem that Strategy has built around it.