Michael Saylor Reaffirms Bitcoin Strategy Despite $12.4B Losses

• Strategy has planned to continue issuing preferred stock to purchase more Bitcoin this year, CEO Phong Le hinted. 
• Michael Saylor publicised the rollout of the Bitcoin Security Program and this move targets collaborating with the global cybersecurity community. 

The executive chairman of Strategy, Michael Saylor, and the chief executive officer, Phong Le, guaranteed that its BTC accumulation strategy would remain intact regardless of increasing unrealised losses. 

At the time of the earnings call after listing $12.4 billion in fourth-quarter losses, management showed that liquidation risk would only come about if Bitcoin slipped to $8,000. In the current scenario, Strategy has 713,502 BTC, whose worth is around $45.5 billion at a BTC price standing at $65,000, showing an unrealised loss of around $8.5 billion. 

At the time of the earnings call, Michael Saylor and the CEO also alleged the company will carry on to purchase more BTC instead of steep unrealised losses. They highlighted the strong capital structure of the company and resilience today. 

What Did The CEO Mention? 

Phong Le mentioned that no liquidations of holdings would take place unless the price slips to $8,000 and sits there for five years till 2032, before we really have an issue. Being capable of satisfying the convertible notes. 

They also referred concerns associated with BTC holdings, debt coverage, and future strategy to equity analysts and industry leaders. This comprises Lance Vitanza, analyst at TD Cowen; Mark Palmer, analyst at Benchmark; Fundstrat and BitMine’s Tom Lee; and Lyn Alden from Lynn Alden Investment Strategy. 

Strategy has planned to continue issuing preferred stock to purchase more Bitcoin this year, CEO Phong Le hinted. The company plans to provide more STRC preferred shares, which contain an 11.25% annual dividend, paid out in monthly instalments. In the current scenario, Michael Saylor requested Bitcoin and held it regardless of the current BTC price crash. 

Michael Saylor publicised the rollout of the Bitcoin Security Program. This move targets collaborating with the global cybersecurity community, crypto security experts, and the Bitcoin security community to refer quantum computing threats and other possible threats. 

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