Strategy CEO Michael Saylor dismissed concerns about the company’s credit risk if Bitcoin continues to decline.
In fact, Saylor said he plans to continue accumulating cryptocurrencies for the company on a quarterly basis.
“If Bitcoin falls 90% over the next four years, we will refinance the debt,” the executive said on CNBC’s “Squawk Box” on Tuesday. “Just roll it forward.”
Asked if he thought banks would continue lending to digital asset treasury companies even if Bitcoin collapsed, Saylor said: “Yes, because Bitcoin is so volatile that it will always remain valuable.”
Bitcoin last traded at $68,970.45, down 9% over the past five days. The token retreated as investors widely reassessed its usefulness, with the token falling 15% to $60,062.00 on Thursday, its lowest level in nearly 16 months. At the bottom, the cryptocurrency has fallen more than 50% from its all-time high.
Strategy has more than $8 billion in total debt on its balance sheet, including from the issuance of convertible debt used to purchase Bitcoin.
The executive also denied suggestions that Strategy would sell its holdings in digital assets. “We will continue to buy Bitcoin on a quarterly basis forever,” Saylor said.
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Strategy, 1 year
According to Strategy’s website, it holds 714,644 Bitcoins worth approximately $49 billion at the time of writing. This makes the company the largest corporate owner of digital assets.
Saylor noted that his company has two and a half years of cash on its balance sheet to cover dividends.
Bitcoin fell below $70,000 again on Tuesday, sending the strategy down about 2%. The stock price has fallen more than 40% in the past three months.
