Michael Saylor: Even if Bitcoin plummets 98%, the company will not face liquidation risk

Odaily News Michael Saylor, founder of Strategy (formerly MicroStrategy), said in an interview that most of the company's Bitcoin was acquired through equity. For example, we currently have $45 billion to $50 billion worth of Bitcoin, and our debt is only $3 billion, and these debts are already secured by assets. So in fact, the Bitcoin we have as collateral is 15 times our debt. And our debt is non-recourse and lasts for more than four years. Even if Bitcoin plummets 98%, the company will not face liquidation risks. The company has permanent capital.
In addition, the company will not lend or pledge Bitcoin to earn interest in the future, and believes that the smartest approach is to issue securities backed by Bitcoin.
Regarding "whether MicroStrategy will develop its own Bitcoin second-layer network or support existing Bitcoin second-layer solutions", Saylor said, I think we will observe the market development first. You can think of MicroStrategy as already operating on the third layer of Bitcoin. The second layer is an open protocol like Lightning, and the third layer is a platform like Binance, Coinbase or MSTR, which are proprietary protocols. So, we already have a three-layer architecture with billions of dollars in transactions per day. We also recently launched Strike, another third-layer protocol, with a daily transaction volume of tens of millions or even more than 50 million US dollars. These are security layers, or third-layer protocols, which are already very strong and attract a certain type of investors. In the future, second-layer solutions like Lightning may be successful, but I think the real $100 billion opportunity is on the third layer.
In addition, Saylor also revealed that I do not hold any other cryptocurrencies. About four years ago, I publicly disclosed that I held 17,732 bitcoins, and the purchase price at that time was slightly less than $10,000 per coin. I don’t remember the exact number, but this information can be found in my public tweets. Since then, I have bought some more, but I have never sold them. Therefore, I now hold more bitcoins than I did then, but I have not publicly disclosed how much I have increased. (Wu said)