MicroStrategy stock has risen by 9% after fresh comments from market analysts pushed back on renewed fears of forced Bitcoin sales. The rise came as Bitcoin OG Pierre Rochard rejected online claims that the company faced liquidation risk. His remarks added clarity while markets reacted to the latest decline in Bitcoin’s price.
The comments followed a period of broad volatility, with the crypto market seeing a wide trading range as Bitcoin moved between $65,118 and $69,303 this week. The current level is more than 45% lower than the October record of $126,080. Yet MicroStrategy leaders said the company remains well positioned.
During an interview with CNBC yesterday, Michael Saylor backed Pierre Rochard comments saying concerns about forced sales were “an unfounded concern.” He added, “Our net leverage ratio is half the typical investment grade company. We have 50 years worth of dividends in bitcoin and two and a half years worth of dividends in cash.”
Strategy Company Structure and Capital Position
According to BTC OG Pierre Rochard, Strategy has made structural adjustments after the last bear market. In the interview, Pierre said the industry learned from the 2022 cycle and shifted toward stable instruments. They pointed to perpetual preferreds, flexible dividend rules, and large reserves. These tools were described as part of a broader move away from structures with liquidation triggers.
As the Coinpaper recently reported, the firm now holds 714,644 bitcoin. The company has spent about $54.35 billion to buy its stack at an average cost of $76,056. Saylor has earlier said the company will continue to accumulate. “We are not going to be selling. We are going to be buying Bitcoin. I expect we will be buying Bitcoin every quarter forever,” he said.
Last week, the company added 1,142 Bitcoin for about $90 million. This came as part of its regular purchases. Executives said the company has a plan meant to support buying through both rising and falling markets.
Despite the buys, Strategy reported an operating loss of $17.4 billion and a net loss of $12.6 billion in the fourth quarter amid the crypto market crash. However, the firm said these losses came from non-cash accounting tied to the lower market price of Bitcoin. The company noted that this accounting method shifts with daily price movements, which can create large paper losses.
Michael Saylor’s View on Bitcoin as Digital Capital
Strategy CEO Michael Saylor, in an interview with Fox News, described Bitcoin as “digital capital.” He said it is “the most useful capital asset in the world,” adding that it can be traded at any time and in any region. As per Saylor, BTC volatility is tied to its open global market but long-term holders need a four- to ten-year view to see its value.
Saylor, in the interview, explained Bitcoin’s global role, noting that many people cannot hold secure assets in their own countries. Consequently, Bitcoin gives “property rights to eight billion people from the palm of your hand.”
When asked about crypto market regulation and United States policy, Saylor noted that the nation should guide digital asset adoption and support local investors. “What we want is constructive policy so that United States companies buy and United States investors buy digital assets,” he said.
Digital Credit and the STRC Instrument
Saylor also spoke about STRC, which he called a digital credit product for investors who prefer lower volatility. According to the Strategy CEO, the STRC uses “the first 11% of the Bitcoin capital gain over time” and passes it to holders as a monthly cash payment.
He said the instrument is “overcollateralized 4 to 5 to 1” and meant for investors who want principal protection with steady cash flow.
Subsequently, the product offers two to three times the cash flow of many credit markets. He added that STRC is designed for market conditions with wide swings in Bitcoin’s price.
Source: https://coinpaper.com/14601/mstr-stock-surges-9-pierre-rochard-debunks-liquidation-fud
