Michael Saylor, a prominent figure in the bitcoin community, recently appeared on CNBC’s Squawk Box to staunchly defend Strategy’s bitcoin acquisition strategy. He emphatically dismissed concerns that the company might be compelled to liquidate its substantial bitcoin holdings during a prolonged market downturn, reiterating Strategy’s unwavering commitment to consistently adding bitcoin to its treasury. Saylor declared, “We’re not going to be selling; we’re going to be buying bitcoin,” adding, “I expect we’ll buy bitcoin every quarter forever.”

Saylor directly addressed speculation within certain segments of the bitcoin community regarding Strategy’s leverage and cash position, which some feared could lead to liquidation pressure if bitcoin prices remained depressed. He categorized these concerns as unfounded, asserting that the company has meticulously structured its balance sheet to effectively withstand market volatility. He highlighted Strategy’s conservative leverage, comparing it favorably to typical investment-grade companies, and pointed to its significant liquidity coverage, which includes enough cash to meet dividend and debt obligations for approximately two and a half years.

These comments come amidst renewed volatility in bitcoin markets, following a recent pullback from previous highs. Such market fluctuations have prompted questions about the long-term sustainability of corporate treasury strategies, particularly those closely tied to digital assets. Strategy has emerged as one of the largest public holders of bitcoin, with its stock frequently trading as a leveraged proxy, amplifying bitcoin’s price movements.

Framing bitcoin’s inherent volatility as a characteristic of “digital capital,” Saylor argued that it remains structurally more volatile than traditional stores of value such as gold, equities, or real estate. However, he emphasized that over extended periods, bitcoin has historically outperformed other capital assets. He urged investors to view bitcoin through a multi-year lens, rather than focusing on short-term price fluctuations, stating, “If you’ve got a time horizon less than four years, you’re not really a capital investor.” He distinguished between traders, who may capitalize on price swings, and long-term investors, who focus on performance over four-year cycles.

When pressed by host Andrew Ross Sorkin about a scenario where bitcoin prices plummeted and stayed low for years, Saylor outlined Strategy’s contingency plan: refinancing debt rather than resorting to selling bitcoin. He expressed confidence that lenders would continue to provide financing, citing bitcoin’s inherent value retention despite significant drawdowns. Saylor further explained that Strategy’s equity is specifically designed to magnify bitcoin’s movements, experiencing faster appreciation during rallies and more pronounced declines during downturns. He contended that Strategy’s strategic volatility generates liquidity and demand for innovative “digital credit” instruments built upon its bitcoin holdings.

Regarding the broader market structure, Saylor downplayed the notion that miner economics establish a definitive price floor for bitcoin. Instead, he suggested that bank lending and evolving Wall Street credit products are poised to play a much more significant role in shaping bitcoin’s next developmental phase. While declining to offer a specific 12-month price forecast, Saylor expressed an expectation for bitcoin to outperform the S&P 500 over the coming four to eight years.

At the time of the statements, Bitcoin was trading near $69,000, and Strategy shares were approximately $135 per share in pre-market trading. The company recently increased its holdings, acquiring 1,142 BTC for about $90 million between February 2nd and 8th, bringing its total bitcoin holdings to roughly 714,644 BTC.