Bitcoin has fallen 15% over the past month, once dipping below $90,000. MicroStrategy (Strategy)'s stock price has plummeted 30% in a single month, sparking heated discussions in the market. Founder Michael Saylor emphasized that Bitcoin's fluctuation will gradually decrease as it matures, and the company can withstand a fall of 80% to 90%. However, well-known gold long positions Peter Schiff countered by saying, “MicroStrategy will ultimately go bankrupt.”
Saylor is not worried about Wall Street entering: Fluctuation is steadily declining.
Even though Bitcoin has retraced its accumulated gains since 2025 this week, Saylor still expressed an optimistic attitude in an interview with Fox Business.
He believes that the market generally misunderstands the pressure that Wall Street's entry is causing on Bitcoin; in fact, the volatility is steadily decreasing. He recalls that when the company first bought BTC in 2020, the annualized volatility of Bitcoin was about 80%, and it has now fallen to around 50%.
He anticipates that in the future, the volatility of Bitcoin will decrease by another five percentage points every few years, ultimately reaching a level of “1.5 times the volatility of the S&P 500 index, but with a 1.5 times return.” In other words, the entrance of institutional funds will not be a source of volatility, but rather a part of maturation.
(MicroStrategy significantly increased its investment in Bitcoin, holding nearly 650,000 BTC, with a target price of $585)
MicroStrategy mNAV fell, and the stock price was halved in a month. Saylor: Not afraid of a 90% fall.
As Bitcoin falls, MicroStrategy's holding strategy is once again under scrutiny.
SaylorTracker data shows that MicroStrategy currently holds approximately 64.9 Bitcoins, worth over 59.6 billion USD. The company's mNAV has fallen from about 1.52 times to 1.11 times since Bitcoin hit a historical high of 125,000 USD in October.
In terms of stock price, $MSTR has fallen 30% in the past month and 50% in the last six months. However, Saylor has not shown weakness due to the market pullback:
MicroStrategy is meticulously designed to continue operating even under a fall of 80% to 90%, and we can say it is almost indestructible.
He also added that the company's leverage ratio is gradually decreasing, and its capital structure remains very robust under pressure.
Archrival sings doom: Peter Schiff claims that the microstrategy will ultimately go bankrupt.
Saylor's optimistic remarks quickly attracted the sarcastic ridicule of old friend and gold bull Peter Schiff. He has always viewed Bitcoin as a bubble, and this time he criticized MicroStrategy as essentially a “fraud company.”
He stated that MicroStrategy's preferred stock yield will be difficult to sustain and predicted that the company will eventually go bankrupt:
I can't see how MicroStrategy is going to escape bankruptcy, those interest payments will not be made.
( Bitcoin will depreciate 40% against gold in 2025, economist Schiff: Sell Bitcoin! )
Data Defense: Schiff Criticizes Saylor for Selective Data Beautification of Performance
Schiff also pointed out the data cited by Saylor, criticizing Saylor's statement that Bitcoin has averaged a 50% increase over the past five years, with MicroStrategy even reaching 70%: “This calculation is significantly inflated by the extreme bull market of 2020, and is just a typical case of 'cherry-picking years to beautify performance.'”
He pointed out that the average annualized return rate of Bitcoin from 2020 to 2025 is indeed correct, but when expanded to 2021 to 2025, the annualized return of Bitcoin is actually less than 20%: “In the past year, Bitcoin has remained almost flat, while MSTR has dropped nearly 50%.”
Schiff believes that Saylor's avoidance of discussing the performance over the past year is a deliberate attempt to obscure risks, allowing investors to overlook MicroStrategy's capital structure.
Today, the confrontation between Saylor and Schiff symbolizes the market's inconsistent attitude towards Bitcoin at its current stage. It is foreseeable that these debates will continue endlessly.
In this article, Saylor is not afraid of a 90% fall in Bitcoin, “MicroStrategy is unbreakable,” Schiff is pessimistic: it will ultimately go bankrupt. First appeared on Chain News ABMedia.
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