Michael Saylor: Even if BTC falls by 90%, the Strategy will continue its strategy.

Source: BTCHaber Original Title: Michael Saylor: “BTC would continue on its strategy even if it drops by 90%” Original Link: Michael Saylor, the chairman of Strategy and a Bitcoin extremist, addressed the market's concerns in a recent television interview.

When asked if the market downturn has changed Bitcoin's value proposition, Saylor's answer was very clear: "You all know that Bitcoin has been around for 15 years. So far, it has experienced 15 major downturns. Each time it has rebounded to a new all-time high. If you take a step back, this is just common. " He added: “This is normal in the lifecycle of emerging transformative asset classes. This is healthy. This process clears out short-term investors, leveraged positions, and weak investors, laying the foundation for the next upward trend.”

Bitcoin Volatility Decreases

When asked about the expectation that Bitcoin's volatility would decrease with its integration into traditional finance, Saylor confirmed that volatility is indeed decreasing: “When I entered this field in 2020, Bitcoin was an asset with an annual growth rate of about 80% and a volatility of 80 percentage points. Over time, this has dropped to 70, 60, and now it is 50. I believe that every few years, the volatility will decrease by another 5 percentage points. As Bitcoin matures, it is becoming an asset that is about 1.5 times more volatile than the S&P 500 index and performs about 1.5 times better.”

The companies with the strongest capital in the industry

The business model of purchasing Bitcoin through lending has also become a topic of discussion. When asked why some believe their business model would collapse, Saylor replied: “You know, the company's value has grown by about 70% over the past five years. Bitcoin has grown by about 50% over the past five years. So in fact, we are one of the best-performing companies in the S&P 500 index, possibly comparable to some tech companies.”

Saylor claims that Strategy is the most capital-rich company in the crypto ecosystem: “We have over $50 billion in equity, and we are a financial powerhouse. Our stock has daily liquidity of billions of dollars, and the liquidity of our credit instruments is 100 times higher than that of average preferred stocks. So our approach is to raise capital by selling digital credit or stock and invest it in digital assets like Bitcoin.”

Long-term Growth Potential

Saylor expects Bitcoin to appreciate by about 30% over the next 20 years. He stated: “The credit tools we provide offer about a 10% yield in the form of capital return, thus providing tax-deferred returns. So this is a quite powerful business model. If you do the math: even if Bitcoin only appreciates by 1.25% each year, the company can forever pay dividends and create more value for shareholders.”

Responding to Further Declines in Bitcoin

When asked what would happen if Bitcoin were to fall further and whether there would be a domino effect, Saylor replied: “The company's design can withstand a decline of 80%-90% and continue to operate, so I believe our risk resistance capability is quite strong. Our leverage is around 10%-15%, and it is currently being reduced towards zero. This is extremely, extremely robust.”