Strategy's Bitcoin Reserves Surpass Debt by $48 Billion
Michael Saylor has responded to criticism over Strategy's debt and financing model by highlighting that its Bitcoin and dollar reserves now exceed its debt by about $48 billion. This is a significant improvement from 2022, when debt briefly exceeded combined Bitcoin and cash reserves by about $300 million. Since then, the company has raised more than $60 billion in additional capital, which it has invested in Bitcoin. Saylor used an X post to explain that Strategy's model involves issuing securities and using proceeds to increase corporate BTC holdings.
Saylor contrasted this with 2022, when Bitcoin traded near $20,000 and Strategy held 130,000 BTC worth about $2.6 billion. He noted that debt then exceeded the company's combined Bitcoin and cash reserves by roughly $300 million, while MSTR fell from $24 to about $13 by year-end after Bitcoin dropped below $16,000.
Critics have focused on Strategy's use of MSTR and STRC securities to keep buying Bitcoin during weak market conditions. Peter Schiff floated the possibility of an investor lawsuit against Strategy and Saylor, saying that Saylor may have violated SEC marketing rules in how he promoted STRC. However, others such as David Gokhshtein and Samson Mow have defended Saylor's strategy, with Gokhshtein calling Bitcoin 'brilliant' and saying its price is not due to Saylor.