Michael Saylor, the Executive Chairman of Bitcoin treasury company Strategy ($MSTR), downplayed worries about the firm’s credit risk even as Bitcoin continues to slide. Speaking on CNBC, Saylor said that he plans to keep buying Bitcoin every quarter, regardless of short-term price moves. In fact, he argued that even an extreme scenario wouldn’t change the strategy. If Bitcoin were to fall 90% over the next several years, he said the company would simply refinance its debt and move forward.
At the same time, Saylor stated he was confident that lenders would continue to support the company. He said Bitcoin’s volatility does not undermine its long-term value and instead reinforces why it remains attractive as an asset. These comments come as Bitcoin recently dropped below $70,000 and briefly fell to around $60,000, its lowest level in roughly 16 months. At one point, the cryptocurrency was down more than 50% from its all-time high.
Despite the downturn, Strategy shows no signs of selling. The company holds roughly 714,644 Bitcoins worth about $49 billion, thereby making it the largest corporate owner of the asset. Strategy also carries more than $8 billion in total debt, largely from convertible notes used to buy Bitcoin, but Saylor noted that the firm has about two-and-a-half years of cash on hand to cover dividends. Still, investors are cautious, with Strategy shares down more than 40% over the past three months.
Is MSTR Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on MSTR stock based on 11 Buys assigned in the past three months, as indicated by the graphic below. Furthermore, the average MSTR price target of $359.82 per share implies 159.5% upside potential.
