Michael Saylor, the executive chairman of MicroStrategy, has been a vocal supporter of Bitcoin for years. Despite his holding almost 2% of the overall Bitcoin supply, Saylor recently acknowledged the theoretical possibility of an 80% crash in Bitcoin’s value at the end of its current cycle. Speaking in an interview with Yahoo Finance, Saylor emphasized that while such a scenario is unlikely, it cannot be completely ruled out.
Bitcoin Could Crash By 80%
Saylor addressed the likelihood of Bitcoin experiencing a dramatic drawdown similar to previous cycles, where the cryptocurrency fell from $66,000 to $16,000 in 2022—a decline of about 80%.
He explained that those sharp corrections were fueled by the collapse of poorly managed companies like FTX, Celsius, and Genesis. According to Saylor, the current market landscape lacks such vulnerable players, making a similar crash improbable.
However, he cautioned that Bitcoin’s historical four-year cycle, which often sees significant corrections after market peaks, remains a factor to consider.
MicroStrategy’s Strategy for Bitcoin
Saylor outlined MicroStrategy’s ongoing Bitcoin acquisition strategy, which involves purchasing Bitcoin consistently, irrespective of price fluctuations. The company has raised capital through debt and issuing shares to fund its Bitcoin purchases, accumulating a massive 402,100 BTC at an average price of $58,219.
Saylor pointed out that MicroStrategy’s Bitcoin holdings have yielded substantial profits, delivering a 63.3% Bitcoin-based return to shareholders.
As of December 2024, this strategy has brought in approximately $12.3 billion in profits, supporting Saylor’s belief that MicroStrategy is the “most profitable and fastest-growing company on the Bitcoin Standard.”
Risks Tied to MicroStrategy’s Strategy
While MicroStrategy’s Bitcoin strategy has paid off, it does come with risks. The company now has a large amount of debt, around $4.57 billion. If Bitcoin goes through a big drop like it has in past cycles, it could hurt MicroStrategy’s finances.
Still, Saylor continues to believe in Bitcoin’s long-term potential. He has been buying Bitcoin for his holdings as well, showing his commitment to the cryptocurrency even in uncertain times.
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