Michael Saylor reiterated his refusal to sell Bitcoin on Monday, even as Strategy’s vast BTC holdings fell below their average purchase price, drawing renewed criticism from market commentators who argue the company’s ability to support Bitcoin’s price is waning.
Bitcoin’s latest decline has pushed the token below Strategy’s estimated cost basis of about $76,037, leaving the firm’s holdings underwater and intensifying scrutiny of Saylor’s debt- and equity-funded accumulation strategy.
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Strategy’s Bitcoin Price Position Turns Negative
Strategy has accumulated more than 712,000 bitcoins since 2020, financing purchases largely through share issuance and convertible debt.
The approach allowed the company to steadily expand its holdings during Bitcoin’s long bull market, but recent price weakness has reversed much of that paper gain.
According to market estimates cited by commentators, Strategy is now roughly $630 million underwater on its Bitcoin position, erasing tens of billions of dollars in unrealized gains recorded earlier this year when Bitcoin was trading near record highs.
While Bitcoin remains up more than 500% from the time Saylor began buying in August 2020, Strategy’s overall return has narrowed to roughly flat.
Critics Question the Sustainability of Strategy’s Model
Bitcoin’s price downturn has emboldened long-time critics of both Bitcoin and Strategy’s approach.
Jacob King, a famed Bitcoin critic, said in a post on X that Strategy’s losses have effectively wiped out the firm’s earlier unrealized profits, arguing that aggressive buying near the top has left shareholders exposed as prices retreat.
Fellow Bitcoin critic Peter Schiff went further, claiming Strategy’s purchases themselves played a significant role in driving Bitcoin’s earlier surge, and that reduced buying power is now contributing to the decline.
“Strategy’s Bitcoin purchases are one of the main reasons Bitcoin’s price rose 550%,” Schiff wrote on X.
“But now that Strategy can’t keep buying as much, the price is falling.”
Schiff added that Bitcoin would not reach a durable bottom, in his view, until Strategy eventually sells its holdings — a scenario Saylor has repeatedly dismissed.
Michael Saylor Maintains Bullish Stance
Saylor, as has come to be expected, responded to the backlash with bullish posts on X.
In a post on X on Tuesday, he restated what he called “The Rules of Bitcoin,” writing:
“1. Buy Bitcoin.
“2. Don’t Sell the Bitcoin.”
In a separate message, Saylor characterized sharp price swings as an inherent part of Bitcoin’s design, calling volatility “Satoshi’s gift to the faithful.”
Speaking at the Bitcoin MENA conference in December, Saylor previously said Strategy’s equity-based structure has already broadened access to Bitcoin well beyond direct crypto ownership, arguing that millions of investors now have exposure to the asset through the company’s shares.
“We have somewhere in the range of 15 million beneficiaries,” Saylor said, referring to Strategy shareholders that include pension funds, institutions and retail investors.
He added that the number could rise substantially in coming years.
“We have delivered Bitcoin interest to 15 million people, and that will double to 100 million people over the next few years,” he said.
Bitcoin Price To $1 Million
Saylor also said Bitcoin’s value could surge dramatically if Strategy’s share of the network grows.
“If we’re lucky enough, if we ever get to 5% of the network, Bitcoin’s going to be at least a million coins,” Saylor said.
“And if we ever get to 7.5% of the network, Bitcoin will be 10 million coins.”
He also added that corporate investment is essential for Bitcoin to scale toward a multi-trillion-dollar asset class.
“We really represent a motor, and we’re powering the network up. We’re driving the price of Bitcoin up from $10,000 to $100,000 or $1 million to $10 million,” he said.
Saylor added that without Strategy’s equity and credit instruments providing institutional on-ramps, “Bitcoin would probably be trading at $10,000 a coin right now.”
