Michael Saylor is making it clear that his company, MicroStrategy (MSTR), is built to survive a Bitcoin crash that would likely wipe out other leveraged players in the market. In a live interview with Grant Cardone on November 14, the executive chairman outlined the company’s financial resilience, stating that even a severe drop in Bitcoin’s price wouldn’t force them to sell their core holdings.
MicroStrategy Can Withstand a 90% Bitcoin Drop
When asked how far Bitcoin would need to fall before MicroStrategy faces real risk, Saylor turned to the numbers. He pointed to around $8 billion in debt and tens of billions in equity value tied to Bitcoin, setting the threshold at a 90% decline from current levels. At that point, he said, the company would be “collateralized one-on-one.”
Even then, his first move wouldn’t be to sell Bitcoin into a falling market. Instead, he explained that equity holders would absorb the initial impact. “We’d probably dilute the equity, which would be bad for shareholders,” he told Cardone, adding bluntly, “The equity is going to be a loser.”
Liquidation, he emphasized, is not on the table in any realistic bear market scenario. When pressed on whether MicroStrategy could be forced to unwind its Bitcoin position, Saylor flatly replied, “We’re not going to liquidate.”
Bondholders would only face risk in an extreme scenario. “If Bitcoin fell to zero tomorrow forever, then the bonds would default,” Saylor said, summarizing the risk: “If you think Bitcoin is going to $10,000, I think we’re good. If you think Bitcoin’s going to a dollar tomorrow forever, then yeah, the bonds would default.”
This clarifies the structure: equity is a leveraged, high-beta bet on Bitcoin that can be diluted if needed, while bondholders only face real danger if Bitcoin essentially becomes worthless.
The 4-Year Cycle Is Over
Saylor also used the interview to challenge the popular belief in Bitcoin’s four-year halving cycle. He argued that while the supply reduction may have influenced earlier phases of Bitcoin’s adoption, it’s no longer the main price driver in a market now shaped by global macroeconomic factors and institutional activity.
“I don’t believe in four-year cycles anyway,” Saylor stated. “I think they might have had some credence in the first 12 years.”
He then put the halving into perspective: after the next halving, the daily reduction in new supply will be around 225 Bitcoin, equivalent to about $20–22 million in buying pressure. Compared to the tens or hundreds of billions traded daily in spot and derivatives markets, he called this amount “marginal” and “not even a third-order issue.”
What really matters now, according to Saylor, are broader factors like Federal Reserve policies, macroeconomic trends, and the actions of major financial players. “It’s macroeconomics. It’s political. It’s structural,” he said, pointing to the rapid growth of institutional Bitcoin products. “It’s the actions of the mega finance actors that are determining the future of Bitcoin right now.”
At the time of writing, Bitcoin was trading at $95,624.
Frequently Asked Questions
Of course Here is a list of FAQs about whether a business strategy can withstand a 90 Bitcoin plunge inspired by Michael Saylors viewpoint
BeginnerLevel Questions
1 What does a 90 Bitcoin plunge mean
It means if Bitcoins price fell from a high value to a point where its only worth 10 of what it was For example if it dropped from 60000 to 6000
2 Who is Michael Saylor and why is his opinion important
Michael Saylor is the Executive Chairman and cofounder of MicroStrategy a business intelligence company He is important because his company has invested billions of dollars into Bitcoin making him a leading corporate advocate
3 Why would a company put Bitcoin in its strategy
Companies like MicroStrategy view Bitcoin as a longterm store of value similar to digital gold They believe it can protect their companys treasury from inflation better than holding cash
4 Isnt it too risky for a company to hold so much Bitcoin
It is considered a highrisk highreward strategy Saylor and others believe that the longterm potential for growth outweighs the risk of shortterm price swings
5 What happens to a company like MicroStrategy if Bitcoins price crashes
The value of its treasury would decrease significantly on paper However if the company doesnt need to sell its Bitcoin to pay bills it can theoretically wait for the price to recover
Advanced Strategic Questions
6 How can a strategy be immune to such a drastic price drop
The strategy isnt immune to the price drop itself but its designed to withstand it This is done by treating Bitcoin as a longterm asset not a shortterm trading vehicle and ensuring the company has enough cash flow to operate without selling its Bitcoin during a downturn
7 What is the HODL mentality Saylor often talks about
HODL is a slang term in the crypto community that means Hold On for Dear Life It refers to the strategy of buying and holding an asset through market volatility instead of panicselling during price dips
8 Could a 90 plunge force a company to sell its Bitcoin
Yes if a company took on debt to buy Bitcoin or doesnt have sufficient cash reserves to cover its operational expenses it might be forced