In light of recent turmoil in cryptocurrency markets, speculation arose on Friday suggesting that Strategy (MSTR) was liquidating its bitcoin assets, coinciding with declines in both BTC and MSTR stock prices.

Executive Chairman Michael Saylor promptly refuted these claims during an interview with CNBC, asserting, “We are buying bitcoin,” and indicating that details of forthcoming purchases would be disclosed on Monday. He elaborated that Strategy is “accelerating [its] purchases” and suggested that investors might find recent activities to be “pleasantly surprising.”

The speculation was fueled by on-chain data indicating bitcoin transfers from company-controlled wallets, which occurred alongside a temporary drop in bitcoin value below $95,000, marking its lowest point in approximately six months.

Despite the circulating rumors, Saylor expressed confidence, stating, “There is no truth to this rumor.”

MSTR shares plummeted below $200 during pre-market and early trading hours, representing a nearly 35% decline year-to-date, which raised concerns regarding the possibility of the company liquidating bitcoin to stabilize its financial position.

Currently, Strategy possesses over 641,000 BTC, valued at approximately $22.5 billion, with an average acquisition cost of around $74,000 per coin. The company’s market capitalization has dipped below the worth of its bitcoin assets, resulting in a market-to-net-asset value (mNAV) ratio falling under 1, a figure often referenced as indicative of potential undervaluation.

Notwithstanding these figures, Saylor underscored that Strategy’s financial position remains “pretty stable” with only a minor leverage ratio and no immediate triggers for debt concerns.

Bitcoin as a Strategic Investment

Regarding long-term investment potential, Saylor maintained an optimistic stance, declaring, “Bitcoin is always a good investment,” contingent upon investors’ readiness to navigate market volatility and maintain a minimum four-year horizon.

He compared bitcoin’s performance to traditional assets, noting its historical average growth of approximately 50% annually over the past five years, outpacing both gold and the S&P 500.

Saylor also differentiated investment strategies, suggesting that while those seeking exposure to digital credit instruments may prefer alternative products, investors focused on long-term ownership of “digital capital” should prioritize bitcoin acquisition.

Amid ongoing market uncertainties and institutional outflows affecting prices, Strategy remains steadfast in its buying strategy. “We’re always buying,” Saylor affirmed, indicating the firm’s intention to leverage market downturns as opportunities to expand its bitcoin reserves rather than liquidate them.

Saylor’s Vision for Bitcoin

He envisions accumulating $1 trillion in bitcoin and achieving an annual growth rate of 20-30%, utilizing long-term appreciation to create a substantial reserve of digital collateral.

From this base, Saylor aims to offer bitcoin-backed credit at yields significantly above traditional fiat systems, potentially 2-4% higher than corporate or sovereign debt, providing safer, over-collateralized financial solutions.

He anticipates that this strategy could invigorate credit markets, equity indexes, and corporate balance sheets, while also fostering the creation of new financial products, such as higher-yield savings accounts, money market funds, and insurance services denominated in bitcoin.

Earlier this week, Strategy acquired 487 BTC for approximately $49.9 million. At the time of announcement, Bitcoin’s price was nearing $106,000. The purchases, made between November 3 and 9 at an average of $102,557 per BTC, raise Strategy’s total holdings to 641,692 BTC, obtained for about $47.54 billion at an average price of $74,079 per coin, reinforcing the company’s commitment to its bitcoin treasury strategy.

As of this writing, bitcoin is trading at $96,815, with recent lows approaching $94,000.

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