Amid a wave of panic sweeping through cryptocurrency markets, rumors began circulating that Strategy (MSTR) was liquidating its substantial Bitcoin holdings. This speculation arose on Friday as both BTC and MSTR stock experienced significant tumbles. However, these rumors were swiftly and emphatically dismissed by Executive Chairman Michael Saylor, who stated in an interview with CNBC, “We are buying bitcoin.” Saylor further assured investors that the company's subsequent purchases would be disclosed on Monday, indicating an acceleration of their acquisition strategy and suggesting that investors might be “pleasantly surprised” by Strategy's recent activities.

The catalyst for these rumors was attributed to on-chain movements that showed Bitcoin being transferred out of wallets believed to be controlled by Strategy. This coincided with a brief but notable drop in Bitcoin's price below $95,000, marking its lowest point in approximately six months. Despite these market jitters and the technical indicators, Saylor firmly maintained that “There is no truth to this rumor.”

The market reaction was palpable, with MSTR shares falling under $200 in pre-market and early trading, representing a nearly 35% decline year-to-date. This downturn fueled concerns that the company might resort to selling its Bitcoin assets to stabilize its balance sheet. In response, Saylor advised investors to maintain perspective amidst the pronounced volatility. He urged them to “Zoom out,” highlighting that Bitcoin was trading in the $55,000-$65,000 range just over a year prior. Even with recent declines, a price point of $95,000 for BTC “is still showing a pretty great return.” Saylor expressed confidence that Strategy had established a “pretty strong base of support around here” and remained comfortable with the prospect of Bitcoin rallying from its current levels.

Strategy's commitment to its Bitcoin treasury strategy remains evident in its substantial holdings. The company currently holds more than 641,000 BTC, valued at approximately $22.5 billion, with an impressive average purchase price of around $74,000 per coin. The company’s market capitalization has recently dipped below the intrinsic value of its Bitcoin holdings, causing its market-to-net-asset value (mNAV) to fall below 1. This metric is frequently cited by analysts as an indicator that the stock may be undervalued. Nevertheless, Saylor emphasized the inherent stability of Strategy’s balance sheet, noting it is “pretty stable” and only fractionally levered, with no immediate debt trigger points on the horizon.

Regarding Bitcoin’s long-term prospects, Saylor maintained an unequivocally bullish stance. He proclaimed, “Bitcoin is always a good investment,” provided that investors are prepared to navigate its inherent volatility and commit to a time horizon of at least four years. He benchmarked Bitcoin’s historical performance against traditional asset classes, observing that BTC has delivered an average annual growth of roughly 50% over the past five years, significantly outperforming both gold and the S&P 500. Saylor also differentiated investment approaches, suggesting that those seeking exposure to digital credit instruments might find other products more suitable, whereas investors focused on long-term ownership of “digital capital” should prioritize Bitcoin.

Despite ongoing market jitters and the impact of institutional outflows on prices, Strategy is resolutely doubling down on its Bitcoin strategy. “We’re always buying,” Saylor asserted, signaling the firm’s intention to leverage market dips as opportunities to expand its Bitcoin holdings rather than sell them off. Earlier in the year, Saylor articulated an ambitious vision in an interview with Bitcoin Magazine, outlining plans to construct a trillion-dollar Bitcoin balance sheet. This colossal digital asset base is intended to serve as a foundational element to reshape global finance.

Saylor envisions accumulating $1 trillion in Bitcoin and fostering its growth at an annual rate of 20–30%, thereby utilizing its long-term appreciation to establish a massive repository of digital collateral. From this robust foundation, he plans to issue Bitcoin-backed credit offering yields substantially higher than those available in traditional fiat systems, potentially 2–4% above corporate or sovereign debt. These offerings would be designed as safer, over-collateralized alternatives. Saylor anticipates that this innovative approach could revitalize credit markets, equity indexes, and corporate balance sheets, concurrently giving rise to novel financial products, including higher-yield savings accounts, money market funds, and insurance services all denominated in Bitcoin.

Reinforcing its stated commitment, Strategy recently executed another significant purchase. Earlier this week, the company acquired 487 BTC for approximately $49.9 million. These purchases, made between November 3 and 9 at an average price of $102,557 per BTC, bring Strategy’s total holdings to 641,692 BTC, acquired for a cumulative sum of roughly $47.54 billion at an average price of $74,079 each. This underscores the company’s unwavering dedication to its Bitcoin treasury strategy. At the time of writing, Bitcoin is trading at $96,815, having recorded recent lows near $94,000.