Michael Saylor, Executive Chairman of Strategy Inc. (NASDAQ:MSTR), said on Wednesday that Bitcoin’s (CRYPTO: BTC) volatility is a feature, not a bug, and is crucial for its “high performance.”
Saylor’s Advice For Bitcoin, MSTR Investors
Saylor took to X, sharing a clip from his recent interview with CoinDesk, in which he discussed the ongoing market correction.
He emphasized that an investor should have a minimum 4-year time horizon to hold Bitcoin, ideally extending to 10 years.
“And if you’re an equity investor in a digital equity like my company, you need that same 4 to 10-year time horizon,” the Bitcoin bull added.
Traditional Investors Would Have ‘Dominated’ If Bitcoin Weren’t Volatile
Saylor said Bitcoin’s volatility is a feature, not a bug, arguing that if it weren’t volatile, it wouldn’t deliver “high performance” as expected.
He also argued that only “conventional finance investors” would have dominated the market if Bitcoin grew 2% a month forever with no volatility.
“Warren Buffett would own all of it and there wouldn’t be an opportunity for us,” Saylor said.
MSTR’s Roller Coaster
Saylor’s comments come in the backdrop of recent criticisms against Strategy, which has been described as a “highly leveraged” Bitcoin bet. Economist Peter Schiff questioned Strategy’s inclusion in global equity benchmarks earlier this week, given the company’s heavy reliance on Bitcoin’s performance.
Notably, JPMorgan analysts warned that Strategy risks delisting from major equity indices due to ongoing sell-offs. The stock is down 40% in a month.
However, Saylor has consistently defended the firm’s business model. He said last week that as long as Bitcoin increases by 1.25% annually, Strategy can maintain its dividend payments indefinitely and boost shareholder value.
Price Action: At the time of writing, BTC was exchanging hands at $91,794.94, up 4.25% in the last 24 hours, according to data from Benzinga Pro.
Strategy shares rose 0.75% in after-hours trading to $176.96. The stock closed 3.74% lower at $175.64 during Wednesday’s regular trading session.
The stock maintains a weaker price trend over the short, medium and long terms. How does it compare with other Bitcoin treasury companies, such as American Bitcoin Corp. (NASDAQ:ABTC)? Visit Benzinga Edge Stock Rankings to find out.
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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
