\n<\/p>\n
Key Takeaways<\/span><\/p>\n Strategy\u2019s Bitcoin bet has turned negative as prices fall below its average cost.<\/p>\n<\/li>\n Critics argue that Strategy\u2019s reduced ability to keep buying Bitcoin is removing a major source of price support.<\/p>\n<\/li>\n Saylor remains firmly bullish despite the drawdown.<\/p>\n<\/li>\n<\/ul>\n Michael Saylor reiterated his refusal to sell Bitcoin on Monday, even as Strategy\u2019s vast BTC holdings fell below their average purchase price, drawing renewed criticism from market commentators who argue the company\u2019s ability to support Bitcoin\u2019s price is waning.<\/p>\n Bitcoin\u2019s latest decline has pushed the token below Strategy\u2019s estimated cost basis of about $76,037, leaving the firm\u2019s holdings underwater and intensifying scrutiny of Saylor\u2019s debt- and equity-funded accumulation strategy.<\/p>\n Strategy has accumulated more than 712,000 bitcoins since 2020, financing purchases largely through share issuance and convertible debt.<\/p>\n The approach allowed the company to steadily expand its holdings during Bitcoin\u2019s long bull market, but recent price weakness has reversed much of that paper gain.<\/p>\n According to market estimates cited by commentators, Strategy is now roughly $630 million underwater on its Bitcoin position, erasing tens of billions of dollars in unrealized gains recorded earlier this year when Bitcoin was trading near record highs.<\/p>\n While Bitcoin remains up more than 500% from the time Saylor began buying in August 2020, Strategy\u2019s overall return has narrowed to roughly flat.<\/p>\n Bitcoin\u2019s price downturn has emboldened long-time critics of both Bitcoin and Strategy\u2019s approach.<\/p>\n Jacob King, a famed Bitcoin critic, said in a post on X that Strategy\u2019s losses have effectively wiped out the firm\u2019s earlier unrealized profits, arguing that aggressive buying near the top has left shareholders exposed as prices retreat.<\/p>\n Fellow Bitcoin critic Peter Schiff went further, claiming Strategy\u2019s purchases themselves played a significant role in driving Bitcoin\u2019s earlier surge, and that reduced buying power is now contributing to the decline.<\/p>\n \u201cStrategy\u2019s Bitcoin purchases are one of the main reasons Bitcoin\u2019s price rose 550%,\u201d Schiff wrote on X.<\/p>\n<\/blockquote>\n Schiff added that Bitcoin would not reach a durable bottom, in his view, until Strategy eventually sells its holdings \u2014 a scenario Saylor has repeatedly dismissed.<\/p>\n Saylor, as has come to be expected, responded to the backlash with bullish posts on X.<\/p>\n<\/p><\/div>\n In a post on X on Tuesday, he restated what he called \u201cThe Rules of Bitcoin,\u201d writing:<\/p>\n \u201c1. Buy Bitcoin.<\/p>\n<\/blockquote>\n In a separate message, Saylor characterized sharp price swings as an inherent part of Bitcoin\u2019s design, calling volatility \u201cSatoshi\u2019s gift to the faithful.\u201d<\/p>\n Speaking at the\u00a0Bitcoin MENA conference in December, Saylor previously said Strategy\u2019s equity-based structure has already broadened access to Bitcoin well beyond direct crypto ownership, arguing that millions of investors now have exposure to the asset through the company\u2019s shares.<\/p>\n \u201cWe have somewhere in the range of 15 million beneficiaries,\u201d Saylor said, referring to Strategy shareholders that include pension funds, institutions and retail investors.<\/p>\n<\/blockquote>\n He added that the number could rise substantially in coming years.<\/p>\n \u201cWe have delivered Bitcoin interest to 15 million people, and that will double to 100 million people over the next few years,\u201d he said.<\/p>\n<\/blockquote>\n Saylor also said Bitcoin\u2019s value could surge dramatically if Strategy\u2019s share of the network grows.<\/p>\n \u201cIf we\u2019re lucky enough, if we ever get to 5% of the network, Bitcoin\u2019s going to be at least a million coins,\u201d Saylor said.<\/p>\n<\/blockquote>\n He also added that corporate investment is essential for Bitcoin to scale toward a multi-trillion-dollar asset class.<\/p>\n \u201cWe really represent a motor, and we\u2019re powering the network up. We\u2019re driving the price of Bitcoin up from $10,000 to $100,000 or $1 million to $10 million,\u201d he said.<\/p>\n<\/blockquote>\n Saylor added that without Strategy\u2019s equity and credit instruments providing institutional on-ramps, \u201cBitcoin would probably be trading at $10,000 a coin right now.\u201d<\/p>\n The post Is Michael Saylor Behind Bitcoin Price Decline? Critics Blame Slowing Strategy Purchases As Saylor Refuses To Back Down appeared first on ccn.com.<\/p>\n<\/p><\/div>\n\n
\n
\n
\n
\n
\n
\n