Strategy stock MSTR has been making headlines as investors expressed concern over its performance. The company’s chairman, Michael Saylor, just addressed some of those concerns during a recent interview.
MSTR stock price has maintained an overall bearish trend since mid-July. It lost roughly 52% of its value since then, and investors have been even more concerned about its prospects after it recently entered oversold territory.
The bearish sentiment across the market this week had investors even more concerned over MSTR prospects. However, Michael Saylor remained firm in his conviction on Bitcoin’s prospects.
Saylor noted that investors willing to secure Bitcoin and MSTR exposure have to embrace maximum volatility. He also noted that the MSTR stock price was still one of the best options for equity investors looking to outperform Bitcoin due to the stock’s amplified nature.
Saylor Packages STRC Stock as the Ideal Solution for the Current Market Situation
According to the Strategy CEO, the MSTR stock may not be ideal for investors who cannot stomach the 4-year volatility cycle. Saylor encouraged anyone looking for lower volatility to consider its other offering, the STRC stock.
The former Strategy CEO described Stretch (STRC) as the company’s more stable alternative offering. HE noted that it is much more stable than MSTR. It aims to attain stability at or near $100, but it pays a 10% plus dividend.
The STRC stock offers exposure to Bitcoin without the volatility. One of the biggest concerns among investors was whether the ongoing bearish onslaught would end up breaking Strategy’s system and crash the stock.
Despite the concerns, Strategy’s impressive profitability allowed the company to stay afloat despite volatile pullbacks every now and then. Bitcoin price has been maintaining a high enough annual growth rate to offset the costs.
Moreover, the company uses any funds secured from the STRC sale to purchase more BTC, thus expanding its exposure to the cryptocurrency.
When probed about the risk that the company is taking with STRC, Saylor noted that it represents a very small percentage of the overall market. Saylor also noted that the STRC approach produced a Sharpe ratio of 6, which means it offers impressive returns with very low risk.
Here’s Why Michael Saylor Believes That the Market is Confident About Strategy’s Performance
There’s no doubt that extreme fear sentiment in the market has impacted the MSTR stock price. Investors were therefore worried about Strategy’s ability to maintain profitability and to continue honoring STRC dividends.
During the interview, Saylor revealed that he remained optimistic about his company’s approach. He noted improvements across various sectors, including favorable regulatory outcomes
He also noted that there was undeniable growth in the number of companies investing in Bitcoin, including BTC treasury companies and ETFs. Even banks have embraced Bitcoin and have recently shed previous limitations to access that had been instituted during the previous administration.
Saylor noted that Strategy predicts that Bitcoin to gain by about 30% every year for the next 20 years. Saylor is convinced that Bitcoin’s performance in the next two decades will favor long-term growth for the company.
Strategy remains well-positioned to benefit from Bitcoin’s maturity. Especially now that global adoption is reaching uncharted territory, that will continue to support long-term growth.