“Wait… they’re in debt?”
Yes—despite holding over 576,000 $BTC (worth ~$61B), Michael Saylor’s Strategy is carrying $10.2B in debt—including $8.2B in convertible notes and $2B in preferred stock. Here’s how this high-stakes Bitcoin gamble plays out, in numbers:
Saylor has turned #bitcoin into the company’s treasury strategy since 2020, buying BTC aggressively through equity offerings and leveraged debt. His belief? Bitcoin will one day hit $13 million per coin. If that happens, Strategy’s #BTC stash alone could be worth $7.5 trillion—a 123x return on their ~$61B holdings.
But if Bitcoin drops—say, 90% to around $10,650—their BTC would shrink to just $6.1B, creating $54B+ in unrealized losses. With only ~$60M in cash on hand, they'd likely be forced to sell at a loss, contradicting Saylor’s “never sell” mantra.
The company’s market cap is $84B, nearly 2x the value of its BTC holdings, suggesting a major premium is priced in. If Bitcoin crashes, that premium could evaporate quickly—hurting shareholders.
In short: Saylor is betting the house on Bitcoin. If it works, it’s legendary. If not? The debt, not just the dip, could be their downfall.