Saylor says Strategy is buying "quite a lot" of Bitcoin

Key Takeaways

• Strategy is increasing its Bitcoin purchases amid market volatility.
• Saylor believes Bitcoin remains the premier digital capital, outperforming other assets and not threatened by stablecoins.

Michael Saylor said Friday that Strategy is purchasing Bitcoin amid recent volatility, which saw the digital asset fall below $95,000 before bouncing back above $96,500.

“We are buying. We’re buying quite a lot, actually,” the Strategy founder and executive chairman said in a morning interview with CNBC’s ‘Squawk Box.’ “And we’ll actually report our next buys on Monday morning. I think people will be pleasantly surprised. In fact, we’ve been accelerating our purchases.”

Bitcoin rose from about $68,000 to $106,000 in the five weeks following the Trump election. Over five years, Bitcoin has gained about 50% annually on average, compared to 14% for gold and the S&P 500, Saylor said.

Strategy, which now holds 641,692 BTC, over 3% of all Bitcoin, bought at an average of roughly $74,000 per coin, has returned 71% over five years, on par with Nvidia, according to Saylor.

“There’s no other stock in the S&P that’s done any better,” he added.

On concerns about leverage, Saylor said the company is less than 1.15 times leveraged with debt that extends for four and a half years.

“If Bitcoin were to fall 80%, we’re still over collateralized and we’re fine,” he said, adding that Strategy is building amplification for common stock using preferred equity, which has no credit default risk.

Asked about Cathie Wood’s revised Bitcoin price target and her view that stablecoins could crowd out Bitcoin’s use case, Saylor dismissed the concern.

“No rich person wants to buy the currency instead of an equity or a real estate, or a capital asset,” he said.

Saylor said the digital assets economy is split between Bitcoin as digital capital and proof-of-stake networks like Ethereum and Solana for digital finance.

“I’m sure that stablecoins are going to go from hundreds of billions to trillions of dollars. But it’s not really competing with digital capital,” he said.