Michael Saylor has defended Strategy’s Bitcoin treasury strategy after a volatile week for the company’s preferred stock, saying the firm’s Bitcoin and U.S. dollar reserves now exceed its debt by about $48 billion.
Saylor compared the company’s current position with its balance sheet stress in late 2022, when Bitcoin traded near $20,000 and Strategy held about 130,000 BTC worth roughly $2.6 billion. He said that after Bitcoin later fell below $16,000, Strategy’s debt exceeded the combined value of its Bitcoin and cash reserves by about $300 million.
The Strategy executive chairman said the company stayed focused, strengthened its balance sheet, and continued executing its Bitcoin strategy. Since then, Strategy has raised more than $60 billion in additional capital and added more than 716,000 BTC.
Michael Saylor Points to Strategy’s Turnaround Since 2022
Strategy currently holds about 846,842 BTC, making it the largest public company Bitcoin holder. The company’s average purchase price is about $75,656 per Bitcoin, according to recent SEC filings, with Bitcoin recently trading near $62,500 to $63,700.
At current prices, Strategy’s Bitcoin position carries a large unrealized loss compared with its average purchase price. Estimates based on the latest holdings and market price place the paper loss near $11 billion, depending on the Bitcoin price used.
Saylor framed the longer-term balance sheet recovery as the main point. He said Strategy’s BTC and USD reserves now exceed debt by about $48 billion, compared with the late-2022 period when debt briefly exceeded liquid reserves.
His comments followed a separate message during the Juneteenth market holiday, where he wrote that volatility is never easy, but Bitcoin keeps working, and Strategy continues working.
Saylor also used the BTC Prague fireside chat with Julian Liniger to explain how he views Strategy’s role in Bitcoin-backed finance. He said the hardest thing in business is not seeing the future but surviving long enough to build it.
During the interview, Saylor described Bitcoin as the dominant global digital capital network, pointing to its 17-year operating history, large infrastructure investment, and what he called a potential $100 trillion market opportunity. He argued that Bitcoin becomes more compelling during major drawdowns when its long-term fundamentals remain intact.
Saylor also discussed Strategy’s transformation from a company with an enterprise value near $600 million to one that had reached as high as about $120 billion during the Bitcoin cycle. He connected that change to corporate focus, endurance, and the decision to avoid dilutive distractions outside the Bitcoin strategy.
STRC Discount Tests Bitcoin-Backed Credit Strategy
Saylor’s comments came as Strategy’s STRC preferred stock traded below its $100 target level. STRC, formally the Variable Rate Series A Perpetual Stretch Preferred Stock, was designed to trade near $100 while paying cash dividends to holders.
Strategy has raised the STRC dividend rate repeatedly, with the annual rate near 11.5%. The company adjusts the rate monthly to encourage the stock to trade near par, but recent trading placed STRC in the high $80s after deeper intraday weakness.
The stock’s decline has raised questions about Strategy’s Bitcoin-backed capital structure. STRC is not collateralized by Strategy’s Bitcoin holdings and carries a preferred claim on residual company assets, making it a credit instrument rather than a direct Bitcoin proxy.
Strategy can issue new STRC most efficiently when the preferred stock trades near or above par. When it trades below $100, that funding channel becomes less useful for Bitcoin purchases and dividend planning.
Analysts Debate Cash Flow and Dividend Pressure
Grayscale’s head of research described Strategy’s preferred-equity obligations as a cash flow issue rather than a crypto issue during a podcast with journalist Laura Shin. He noted that Bitcoin produces no yield, which means coupon payments must come from cash, equity issuance, asset sales, or other financing sources if Bitcoin price appreciation does not offset obligations.
Strategy faces roughly $1.5 billion in annual dividend obligations across its preferred-stock instruments, including STRC and STRK. Its software business generated about $477 million in 2025 revenue, while its cash reserve of about $1 billion covers less than one year of preferred payments.
Concurrently, the company recently sold 32 BTC at an average price of $77,135 to help fund preferred dividends. That sale drew attention because Strategy is widely known for long-term Bitcoin accumulation, although Saylor has argued that the company remains a net buyer by a wide margin.
