Michael Saylor strongly defends Strategy's Bitcoin treasury in the face of market doubts

Michael Saylor defends his Bitcoin treasury model against criticisms about its sustainability, proposing a new financial architecture based on digital capital and credit.

The tension between traditional financial models and the new digital economy reached a boiling point recently during a public appearance by Michael Saylor. The founder of Strategy, the firm that leads the global institutional accumulation of Bitcoin, engaged in a heated exchange that has reignited the debate about the sustainability of companies that base their existence on the accumulation of the leading cryptocurrency. 

The incident occurred during his participation in the podcast. What bitcoin did On January 12, interviewer Danny Knowles questioned the long-term viability of issuing perpetual debt to acquire digital assets without an operating cash flow to back it up.

Saylor's reaction was immediate and visceral. When it was suggested that the model might not be sustainable for the more than 200 companies currently imitating its strategy, the executive called the questioning an ignorant and offensive assertion. 

For Saylor, asking whether it's rational for a corporation to issue securities to buy Bitcoin is comparable to questioning whether companies should have adopted electricity in the last century. His position is unwavering, suggesting that this isn't a speculative bet, but rather a matter of... inevitable adoption of a superior technology which renders previous capital management methods obsolete.

The recent verbal clash involving Saylor reflects a growing friction in financial markets. While the president of Strategy argues that adopting Bitcoin as a reserve asset is the only logical way to preserve shareholder and corporate value, analysts are cautiously examining the numbers. According to the firm's financial reports, the company generated $125 million in operating cash flow from its legacy software business during the first nine months of 2025. However, during that same period, the company raised over $50.000 billion by issuing shares and convertible bonds to purchase more bitcoins. This implies that more than 99% of the capital supporting the firm's crypto treasury comes from financial engineering rather than traditional business operations.

Between debt and Bitcoin: the new corporate wave inspired by Saylor

Saylor's aggressive strategy has completely transformed the identity of his company. Strategy was formerly a business intelligence firm; however, it has now transformed into the world's largest corporate Bitcoin holdercontrolling more than 687.400 units, which represents approximately 3,27% of all bitcoins that will ever exist. 

The data presented in the company's earnings reports shows that the software business has taken a back seat to near irrelevance, serving only as a footnote in presentations dominated by Bitcoin accumulation metrics.

Strategy's stock market success, with its shares increasing tenfold since the implementation of this policy in 2020, has triggered a ripple effect. According to data from BitcoinTreasuries, hundreds of publicly traded companies have now amended their bylaws to include Bitcoin on their balance sheets, collectively holding approximately 1,1 million units. Cases like Metaplanet in Japan perfectly illustrate this trend. The company transitioned from a hotel operator to divesting its physical properties, transforming into a purely digital investment vehicle by issuing debt to acquire cryptocurrencies.

However, the market has begun to show signs of saturation or skepticism regarding the proliferation of these models. Nearly 40% of Bitcoin-linked treasury bonds are trading at a discount, a critical metric that hinders these companies' ability to raise new capital efficiently. Furthermore, over 60% of these firms acquired their reserves at prices above the current market price, putting pressure on their balance sheets. 

Even so, despite these figures, Saylor insists there is no competition among these corporations. During the interview, he argued that there is ample room for millions of companies to adopt this strategy, since even those operating at a loss can become profitable if the appreciation of their digital assets outweighs their cash flow deficits.

Bitcoin as a global economic force

To understand the ferocity with which Saylor defends his strategy, it is necessary to analyze the vision he presented during the Cantor Crypto EventOn November 10th, the president of Strategy went beyond simply accumulating bitcoins and outlined a theory where cryptocurrency is not just an asset, but a way of... digital energy and foundation of a new global capital infrastructure. 

According to his thesis, traditional assets suffer constant degradation due to inflation and political intervention, while Bitcoin offers thermodynamic immutability that allows economic energy to be preserved over time without losses.

In other words, Saylor's objective transcends the buy-and-hold Bitcoin strategy. His long-term proposal includes the creation of a Digital Credit Market massive. The central idea is that, once Bitcoin consolidates as the ultimate reserve asset, financial institutions will be able to build credit instruments using the cryptocurrency as low-risk collateralSaylor envisions structured financial products that offer attractive returns while eliminating the counterparty risk inherent in fiduciary banking. As he explained to investors at Cantor Fitzgerald, if an entity can offer stable returns backed by an instantly liquid, globally accessible asset, the traditional financial system will be forced to migrate to this new architecture.

This vision positions Strategy not only as an investment fund, but as the pioneer of a commercial bank of the future operating under entirely different standards. The company has already begun experimenting with products internally referred to as Stretch, stride y Strifedesigned to explore different risk and return profiles within this emerging ecosystem.

Saylor argues that this transition to business models based on Bitcoin and digital assets will transform global access to credit and the management of economic value, progressively displacing fiat money to a secondary role as a mere transactional medium of exchange.

Strategy leads the boldest financial experiment of the 21st century

Michael Saylor's strategy is of historic magnitude and carries proportionate risks. By linking the fate of his company and its shareholders to the volatility and adoption of a single asset class, he has eliminated any traditional safety net. 

If its theory on digital energy and the obsolescence of fiat capital proves correct, Strategy could solidify its position as the most important financial institution of the 21st century. Conversely, if the market rejects the premise that perpetual debt is sustainable for acquiring a digital asset like Bitcoin, the consequences for the crypto corporate sector could be severe. 

However, what is undeniable, as evidenced by his statements and actions, is that for Saylor there is no alternative plan; the total integration of corporate finance with the Bitcoin standard is, in his view, the only possible future.