Saylor Stands Firm Despite Bitcoin at $59,000

Bitcoin touched $58,000 this week, its lowest level since October 2024, wiping out 52% of its all-time high of $126,000. Strategy, Michael Saylor’s company, faces over $13 billion in unrealized losses on its 847,363 BTC. Saylor is not changing course. But how long can this model hold?

An accumulation model tested by the Bitcoin drop

Strategy remains focused on a single thesis: accumulate bitcoin regardless of market conditions. Since 2020, the company has aggressively raised funds to build a stock of more than 847,000 BTC, making continuous accumulation the pillar of its identity.

Michael Saylor directly responded to shareholders’ concerns this week: “volatility tests every capital structure“, he said, specifying that Strategy would continue to act “with transparency and determination.” 

Supporters of the model call the current unrealized losses temporary, relying on the 2022 precedent: at the time, Strategy held 130,000 BTC valued at $2.6 billion with a price under $20,000, debt exceeded assets and shares had fallen over 45%. The company did not sell.

However, CryptoQuant recommends suspending purchases and replenishing cash reserves first, rather than buying at every fundraising round. Strategy has also raised its dollar reserves to $1.4 billion, a sign it is monitoring liquidity.

STRC under pressure weakens financing mechanics

Strategy’s financial structure faces unprecedented stress. Its preferred share STRC, designed to trade around $100, has fallen below $89. This decline automatically triggers an increase in the dividend paid to shareholders, adding approximately $53 million in annual expenses to Strategy.

This context mechanically reduces the company’s capacity to finance new BTC purchases through this instrument. Moreover, Strategy’s mNAV has fallen to 1, a level at which its policy advises against issuing new MSTR shares to raise funds. Nevertheless, Saylor reminds that BTC and cash reserves now equal total debt of $48 billion, with over $60 billion raised since 2022.

Strategy is going through its toughest test since converting to bitcoin in 2020. Record unrealized losses, weakened STRC, mNAV at 1: financing instruments are simultaneously under pressure. 

In this climate, some heavily exposed investors preferred to liquidate their positions this week, while others keep selling their BTC to meet financial commitments. Michael Saylor, however, stands firm. The real verdict will not rest on Bitcoin’s price alone, but on the resilience of the entire financial ecosystem Strategy has built around it.