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Michael Saylor predicts Bitcoin will beat S&P 500
I remember the excitement in the crypto market when Bitcoin (BTC) hit north of $126,000 in early October last year to hit its all-time high (ATH).
But the flash crash on Oct. 10 has led to the king coin plummeting below $70,000.
In fact, Bitcoin is down 28.6% over the last year.
Worse, the stock of Strategy (Nasdaq: MSTR), the largest Bitcoin treasury company, is down 58.82% over the last year. Due to the ongoing Bitcoin crash, the company reported a net loss of $12.4 billion, or $42.93 per common share, in Q3 2025.
Yet Strategy co-founder and executive chairman Michael Saylor is bullish on Bitcoin.
Strategy's Bitcoin holdings drag stock down
Saylor co-founded MicroStrategy as a traditional enterprise software company in 1989. Things were going on as usual until he came across Bitcoin during the coronavirus pandemic in 2020.
The company began buying Bitcoin to build a digital asset treasury (DAT). The way other publicly listed companies hold cash or other traditional assets on their balance sheets, a DAT company holds crypto assets like Bitcoin on its balance sheet.
Given the devaluation of the U.S. dollar, Saylor found Bitcoin to be better suited as a balance sheet component than the fiat currency.
With 714,644 Bitcoin worth $49 million on its balance sheet, the company is the world's largest Bitcoin treasury company.
When Bitcoin rallied, the MSTR stock reflected the same trajectory on the charts. But once the cryptocurrency began crashing, the company's stock also began to crash—with even more volatility.
Last year, MSCI (formerly Morgan Stanley Capital International) considered removing stocks with MSTR from its indices because a company like Strategy has dedicated more than 50% of its balance sheet to digital assets.
Though MSCI later delayed its decision, the proposal is still hanging like a dangling sword over Strategy's head.
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Saylor says Bitcoin will outperform S&P 500
On Feb. 10, Saylor appeared on CNBC's Squawk Box and dismissed any concerns about Strategy’s credit risk if Bitcoin keeps going down.
CEO Phong Le echoed the same point of view during the earnings call recently when he said Bitcoin would need to crash to $8,000 and stay there for 5-6 years before it can pose a real threat to Strategy's convertible debt.
In response to whether banks would continue to lend to the company if BTC keeps crashing, he said, “Yeah, because the volatility of Bitcoin is such that it’s always going to be a value.”
Saylor reiterated that Strategy will keep buying Bitcoin every quarter. He added that the firm has 2.5 years' worth of cash and 50 years' worth of dividends in Bitcoin on its balance sheet.
Even if the company is sitting on an unrealized loss of billions of dollars, Saylor doesn't seem worried.
He also downplayed the concerns that the cost of production for miners leads to Bitcoin having a structural floor price of $60,000 and instead said institutional adoption by Wall Street giants like BlackRock (NYSE: BLK) will prove to be bullish for the cryptocurrency.
Saylor went on to predict that Bitcoin will outperform the S&P 500 in the next 4-8 years.
The S&P 500 is an index tracking 500 of the largest public companies in the U.S. Strategy has so far failed to make it to the much-coveted benchmark.
Bitcoin was trading at $69,767.74 at press time, down 1.3% over the last 24 hours.
The MSTR stock was trading at $136.69 at press time, down 1.75% in a day.
This article has been published in thestreet.com via Yahoo News.
Michael Saylor predicts Bitcoin will beat S&P 500
I remember the excitement in the crypto market when Bitcoin (BTC) hit north of $126,000 in early October last year to hit its all-time high (ATH). But the flash crash on Oct. 10 has led to the king coin plummeting below $70,000. In fact, Bitcoin is down 28.6% over the last year. Worse, the ...
finance.yahoo.com
