Michael Saylor: Even if Bitcoin falls 90%, the strategy will continue to be executed.

Source: BTCHaber Original Title: Michael Saylor: “BTC would continue on its strategy even if it drops by 90%” Original Link: https://www.btchaber.com/michael-saylor-btc-yuzde-90-dusse-bile-strategy-yoluna-devam-eder/ Michael Saylor, who serves as the chairman of the board of Strategy and is known for his Bitcoin maximalist statements, answered curious questions during a television broadcast he participated in a few days ago.

About Bitcoin's Volatility

During a live broadcast, Saylor was asked whether the current market downturn has affected Bitcoin's value proposition. As expected, Saylor's response was quite clear: “You know Bitcoin has been around for 15 years. It has experienced 15 major downturns so far. And it has always returned to a new all-time high. If you step back and look at it, this is just a normal situation.”

Saylor added: “This is normal in the life cycle of an emerging transformational asset class. And this is a healthy thing. This process cleanses short-term investors, leveraged positions, and weak investors, laying the foundation for the next upward rally.”

Decrease in Volatility

Fox Business host asked Saylor, “Many people expected the volatility to decrease as a result of Wall Street's flirtation with Bitcoin. Do you think the Wall Street connection helped or hurt?” Saylor, who noted that volatility has indeed decreased, said the following on the subject: “When I entered this space in 2020, Bitcoin was an asset with an annual growth of about 80% and a volatility of 80 points, and this has now dropped to 70, 60, and now 50 over time. I think it will decrease by another 5 points in volatility every few years. As Bitcoin matures, it is moving towards being an asset that is about 1.5 times more volatile and 1.5 times better performing than the S&P index.”

The Strong Position of Strategy

The interview also discussed Strategy's business model of borrowing to purchase Bitcoin. When asked, “Why do some think your business model will collapse?” Saylor replied, “You know, the company's value has increased by about 70% in the last five years. Bitcoin has increased by about 50% in the last five years. So, we are actually one of the best-performing companies in the S&P index, perhaps alongside Nvidia.”

Saylor continued his words by stating that they are the strongest company in the crypto ecosystem: “We have over 50 billion dollars in equity and we are a financial power center. There are billions of dollars in liquidity in our shares every day, and our credit instruments are 100 times more liquid than the average preferred stock. So our approach is to raise capital by selling digital credit or shares and invest it in Bitcoin, which is digital capital.”

Long-Term Expectations for Bitcoin

Saylor, who stated that he expects the price of Bitcoin to increase by about 30 percent over the next 20 years, said, “We are offering these credit instruments that provide approximately 10 percent dividend return, in the form of capital return, thus offering tax-deferred returns. So it's a very strong business model. If you want to do the math: even if Bitcoin increases by 1.25 percent per year, the company can pay dividends forever and create more shareholder value.”

Excessive Drop Scenario

In response to the program server's question “But what if Bitcoin falls more? Would there be a domino effect?”, Saylor gave the following answer: “The company is designed to handle a drop of 80-90%, so I think we are in a quite indestructible situation. Our leverage level is around 10-15% and is currently heading towards zero. This is extremely, but extremely solid.”