Strategy CEO Phong Le has dismissed market fears over the company’s stock, MSTR, and the recent Bitcoin price crash.
Le also emphasized that they are not worried about losing $17.4 billion in Q4 2025 unless BTC falls back to $8,000. In a recent interview with CNBC, he said said,
“($17.4 billion) GAAP loss is not really a real cash loss for the company. If Bitcoin falls to $8,000 for five years, we may start to have problems and have to sell BTC. But the GAAP loss is not something we are concerned about.”
According to US GAAP (Generally Accepted Accounting Principles), crypto companies must recognize impairment losses or gains on their underlying investments for the specified period covered in their reports.
BTC’s extended price decline from $126,000 in October to $87,000 in late December led to Strategy losing its price. $17 billion of the value of his BTC holdings. But Le said it was “extremely unlikely” that BTC would fall to $10,000.
Strategy clarifies claims about leverage and ‘fraud’
Le further reiterated that they are not concerned about leverage and the impact of dividend payments BTC crashes, adding that,
“We have a cash reserve of $2.52 billion as a digital fortress to support dividend payments. We are not concerned about leverage, dividend payments and are not concerned about the price of BTC at this time.”
In response to ‘fraud’ claims from Peter Schiff, a longtime Bitcoin critic, Michael Saylor, founder of Strategy, replied that their products outperform all perceived alternatives.
Source: X/Michael Saylor
Stretch (STRC) is one of the preferred stocks. Strategy issues to raise capital for BTC purchases.
In return, STRC offers investors a return of 11%. However, Schiff questioned where the returns came from and labeled the overall model for raising capital as “fraud” and a “Ponzi” scheme.
Treasury companies are holding firm
Meanwhile, most Bitcoin treasuries have not aggressively engaged in dip buying as BTC fell to $60,000. Yet no one panicked and sold their belongings.
According to Blokwerk factsbefore and after the withdrawal, the treasury companies held a combined value of 813,000 BTC.
Source: Blokwerken
Strategy was responsible for 713.5K BTC of the total Bitcoin treasury holdings.
That said, Friday’s 12% bounce in BTC, from $60,000 to $71,000, lifted MSTR stock 26% to $134.9, reversing Thursday’s 17% loss. That is a 2x better performance compared to BTC.
This confirmed Saylor’s statement that MSTR is an ‘amplified wrapped BTC’. However, it also dumps harder as BTC slides.
Final thoughts
- Strategy CEO Phong Le downplayed the impact of the recent BTC crash on the company’s overall health and plans
- Treasuries held a collective 813,000 BTC and did not reduce their holdings during BTC’s sharp price drop to $60,000