Michael Saylor Says Strategy’s Current Capital Structure ‘Bulletproof’ Compared To 2022 Crypto Winter, Asserts Company Can Weather 80% Bitcoin Crash
Strategy Inc. (NASDAQ:MSTR) CEO Michael Saylor expressed confidence in his company’s Bitcoin (CRYPTO: BTC) buying approach Thursday, asserting that it could endure an 80% drawdown and remain resilient even in a bear market.
What Happened: During the company’s second-quarter earnings call, Saylor was asked about the company’s ability to weather Bitcoin bear markets and the potential impact on its capital structure.
“I think that our structure is smooth, and we wouldn’t miss a single dividend payment on an 80% drawdown,” Saylor responded. “On a 90% to 95% drawdown, in theory, you might suspend something for a little bit of time.”
Saylor cited the company’s pivot to a “robust antifragile” perpetual preferred stock strategy, which has no maturity date and retains the initial capital invested.
He pointed out that the company had previously survived an 80% Bitcoin pullback during the 2022 cryptocurrency winter with a weaker capital structure, dominated by convertible …
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