Strategy's Saylor defends Bitcoin strategy as reserves exceed $54B debt

Michael Saylor said Strategy's Bitcoin and cash reserves now exceed its total debt, defending the company's accumulation model against mounting criticism over its preferred stock collapse.

"Volatility is never easy. Bitcoin keeps working. So do we," Saylor, executive chairman of Strategy, said in a social media post on Juneteenth, his first public comment on the selloff in the company's preferred stock. At BTC Prague, he said the company's willingness to sell Bitcoin when necessary is what allows it to keep servicing preferred dividends and maintain credibility with credit investors.

Strategy holds 845,256 Bitcoin worth more than $54 billion, making it the largest publicly listed corporate holder of the cryptocurrency. The company's preferred stock, STRC, fell to an all-time low of $83 on June 18, closing below its $90 IPO price for the first time. The security, which pays a 13% dividend, has lost its $100 par value, raising concerns about dividend sustainability after Strategy sold 32 Bitcoin in late May to help fund the payout. MSTR stock has declined 28% this year to trade at $112.53.

The defense comes as Bitcoin traded near $63,000 on June 19, under pressure from risk-asset selling and uncertainty around Strategy's financing model. Saylor predicted at BTC Prague that capital rotating out of artificial intelligence fundraising rounds will flow back into Bitcoin toward the end of the year, calling 2026 "the most exciting year in the history of Bitcoin."

The STRC Pressure Point

The preferred stock's decline carries consequences beyond paper losses. Strategy has relied on issuing preferred securities to raise cash for additional Bitcoin purchases. When STRC trades materially below its $100 reference value, issuing new shares becomes less attractive, potentially limiting the company's ability to raise fresh capital.

Saylor acknowledged the tension at BTC Prague, saying the company is "dynamically balancing growth versus risk," accepting short-term dilution in exchange for long-term balance sheet strength. He argued that without the flexibility to sell Bitcoin when necessary, "the business model is broken."

What the Models Say

The controversy intensified after resurfaced comments revealed Saylor used ChatGPT to help design parts of the STRC structure. Asked whether STRC can recover to $100, three leading AI models offered conditional assessments. ChatGPT said a return to par is possible if Bitcoin stabilizes and demand for income-focused securities improves. Grok said recovery would be "extremely tough" and depends on Bitcoin's performance. Claude said preferred securities often recover from discounts when investors regain confidence in the issuer's ability to meet long-term obligations.

This article is for informational purposes only and does not constitute investment advice.