Strategy Executive Chairman Michael Saylor on Tuesday said Bitcoin (BTC) has entered a new “crypto winter,” describing the current drawdown as the fifth major market contraction in the past five years but arguing the downturn is less severe than previous cycles.
Saylor Says Current Crypto Winter Is Milder And Likely Shorter
“We are in a crypto winter,” Saylor said in an interview with Fox Business, adding that the decline is “much milder” than earlier bear markets and will be followed by a recovery phase.
He attributed his confidence to stronger institutional backing for digital assets, pointing to growing bank participation, the expansion of digital credit markets and a U.S. political environment he characterized as supportive of the sector.
Equity-Funded Bitcoin Strategy Limits Balance Sheet Risk
Saylor dismissed concerns about the company’s average Bitcoin purchase price, estimated to be in the mid-$70,000 range, being above current market levels, saying the figure is less relevant because most acquisitions were financed through equity rather than debt.
According to Saylor, the company raised about $55 billion in capital across 2024 and 2025, with roughly $8 billion coming from borrowing.
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That structure, he said, reduces the risk that price volatility would pressure the balance sheet and allows the firm to continue buying Bitcoin through market cycles.
He added that the company holds billions of dollars in cash and a large Bitcoin reserve, which he framed as sufficient to sustain operations and dividend obligations for decades without relying on short-term market performance.
Long-Term Capital Strategy Built Around Bitcoin Appreciation
Saylor said the firm has multiple options to meet its financial commitments, including returning Bitcoin to investors, issuing equity backed by its holdings or using derivatives tied to its digital-asset position.
He also defended the company’s preferred equity product, which offers double-digit yields, saying the structure is based on long-term expectations for Bitcoin’s price appreciation and is heavily overcollateralized.
Macro Factors Seen As Secondary To Structural Demand
While declining to predict interest-rate policy, Saylor argued Bitcoin’s long-term performance is driven by its role as a non-sovereign store of value, a core asset in digital finance and a form of globally transferable property.
He said those structural demand drivers remain intact despite the current market downturn.
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