Strategy CEO Phong Le has dismissed market fears about the firm’s stock, MSTR, and the recent Bitcoin price crash.
Le also emphasized that they were not worried about the $17.4 billion Q4 2025 loss, unless BTC slips to $8K. In a recent interview with CNBC, he said,
“($17.4B) GAAP loss is not really a true cash loss to the company. If Bitcoin goes down to $8K for five years, maybe that’s when we’ll start having issues, and whether we need to sell BTC. But the GAAP loss isn’t something we’re concerned about.”
Under U.S. GAAP (Generally Accepted Accounting Principles), crypto firms must recognize impairment losses or gains on their underlying holdings for the specified period covered by their reports.
The extended BTC price decline from $126K in October to $87K by the end of December led Strategy to shed over $17 billion from the value of its BTC holdings. But Le said it was ‘extremely unlikely’ for BTC to fall to $10K.
Strategy clarifies leverage and ‘fraud’ claims
Le further reinstated that they are not worried about leverage and the impact of dividend payments as BTC crashes, adding that,
“We have $2.52B cash reserve as a digital fortress to back up dividend payments. We’re not worried about the leverage, dividend payments, and are not concerned about BTC price right now.”
In response to ‘fraud’ claims made by Peter Schiff, a long-time Bitcoin critic, Michael Saylor, founder of Strategy, retorted that their products outperform all perceived alternatives.
Stretch (STRC) is one of the preferred stocks Strategy issues to raise capital for BTC buys.
In return, STRC offers an 11% yield to investors. However, Schiff wondered where the yield was being generated, slamming the overall capital-raising model as ‘fraud’ and a ‘ponzi’ scheme.
Treasury firms hold steady
Meanwhile, most Bitcoin treasury firms didn’t aggressively jump into dip-buying as BTC dumped to $60K. Even so, none panicked and sold their holdings.
According to Blockworks data, the treasury firms held a collective 813K BTC before and after the drawdown.
Strategy accounted for 713.5K BTC of the total holdings of Bitcoin treasury firms.
That said, the 12% relief bounce in BTC on Friday, from $60K to $71K, lifted MSTR stock by 26% to $134.9, reversing the 17% loss posted on Thursday. That’s a 2x outperformance against BTC.
This validated Saylor’s statement that MSTR is an ‘amplified wrapped BTC.’ However, it also dumps harder when BTC slips.
Final Thoughts
- Strategy’s CEO Phong Le downplayed the impact of the recent BTC crash on the firm’s overall health and plans
- Treasury firms held a collective of 813K BTC and didn’t reduce holdings during the sharp BTC price drop to $60K
