Bitcoin steadies as MicroStrategy reiterates BTC strategy

Saylor: MicroStrategy holds 717,131 BTC; buying to continue

MicroStrategy now holds 717,131 BTC after purchasing 2,486 BTC for $168.4 million, as reported by CryptoRank. The update reinforces michael saylor’s ongoing accumulation strategy around the company’s bitcoin treasury.

Prior commentary had cited roughly 714,644 BTC with an average cost near $76,056 per coin before the latest purchase, according to Investing.com. The subsequent addition lifts reported holdings and underscores management’s stated intent to keep adding over time.

Why it matters: debt, refinancing stance, and risk tolerance

Saylor has articulated a refinancing-over-selling stance and indicated the company would endure significant bitcoin drawdowns by extending obligations rather than liquidating core holdings, as reported by Barron’s. That posture implies a willingness to accept equity volatility in exchange for long-horizon bitcoin exposure.

Observers describe the liability side as long-dated and largely in convertible-note form, limiting margin-call dynamics relative to collateralized loans, according to CCN. In practice, that structure gives management time to manage liquidity and capital access through cycles, though it concentrates performance risk in bitcoin.

At the time of this writing, MSTR most recently closed at $131.05 on February 20, based on data from Yahoo Finance. Near-term trading will likely continue to reflect bitcoin volatility, funding conditions, and sentiment toward leveraged bitcoin proxies.

MicroStrategy’s equity can trade at a premium or discount to the net asset value (NAV) of its bitcoin holdings due to embedded leverage, equity optionality, and capital-raising flexibility. When sentiment weakens or dilution risk rises, that premium can compress into a discount.

Bitcoin recently dipped below $68,000 amid volatility, as reported by Coingape. Such moves can quickly alter perceived upside from leverage, changing the gap between NAV and market capitalization for MSTR.

Analyst reactions to Michael Saylor Bitcoin strategy and MSTR

Supportive views and nuanced confidence in long-term thesis

Some brokers have tempered expectations while maintaining confidence in the long-term thesis. Cantor Fitzgerald, for example, materially trimmed its 12‑month target but kept a positive rating on the shares, as reported by the Financial Times.

Others argue that a stock premium over bitcoin NAV can be rational if the company increases bitcoin per share and manages capital adeptly. “Not unreasonable,” said Adam Back, CEO of Blockstream, as reported by Cointelegraph.

Critical flags: index risk, dilution, concentration, sentiment

Skeptics highlight concentration in bitcoin, potential exclusion from major indices, and the possibility of forced selling by benchmarked funds if that occurs, according to Forbes. They also flag that equity, debt, or preferred issuance at unfavorable terms could dilute shareholders if the NAV premium narrows.

Wealth managers have questioned whether repeatedly issuing securities to buy bitcoin ultimately destroys value if bitcoin underperforms. Ross Gerber has been particularly critical of the model’s sustainability, as reported by TheStreet.

FAQ about Michael Saylor Bitcoin

If Bitcoin drops sharply, will MicroStrategy sell or refinance, how does its debt structure work?

Saylor indicates refinancing over selling, even in deep drawdowns. Debt is largely long‑dated convertibles with few margin calls, so liquidity pressure is time‑managed, not immediate.

Why does MSTR trade at a premium or discount to its Bitcoin net asset value (NAV)?

Premium reflects leverage, corporate optionality, and investor demand; discounts emerge when sentiment weakens, dilution risk rises, or BTC underperforms relative to embedded leverage in the equity.