As Michael Saylor continues to project confidence in Bitcoin through one of the sharpest market corrections of the year, new data shows just how close his company is to breakeven – and why liquidation risk remains far lower than many assume.
According to recent figures, MicroStrategy (now operating under the name Strategy) is currently about 1.8% away from going into the red on its Bitcoin holdings, following Bitcoin’s drop toward the high-$70,000 range.
Despite that proximity, Saylor has reiterated that even an extreme scenario – Bitcoin falling to $1 – would not force liquidation. Instead, he claims the company would continue accumulating.
Strategy currently holds 712,647 BTC, valued at approximately $55.72 billion at current prices. The company’s average acquisition price sits at $76,038 per Bitcoin, placing the portfolio just above its aggregate cost basis as Bitcoin trades near $77,900.
At the recent cycle peak around $126,000, Strategy’s Bitcoin holdings were worth roughly $81 billion, despite the company holding 70,000 fewer BTC at the time. That contrast highlights how price appreciation – rather than position size alone – has driven much of the company’s balance-sheet expansion.
The current drawdown has compressed those gains, but it has not materially altered the company’s capital structure.
While headlines often frame Strategy’s position as highly leveraged, the reality is more nuanced. The company’s Bitcoin exposure is primarily financed through long-dated convertible debt, not short-term margin or collateralized borrowing tied to daily price fluctuations.
That structure significantly reduces forced-selling risk. Unlike leveraged traders or funds using perpetual futures, Strategy does not face margin calls triggered by intraday volatility. This is why Saylor can credibly argue that even severe downside scenarios would not result in automatic liquidation.
In other words, price volatility alone is not enough to threaten the position.
Saylor’s statement that Strategy would continue buying even if Bitcoin collapsed to $1 is not meant as a literal forecast, but as a signal of intent. The company treats Bitcoin as a long-term treasury reserve asset, not a tactical trade.
That philosophy has been tested repeatedly during sharp drawdowns, including the current correction driven by liquidity stress and forced deleveraging across the broader crypto market. Yet Strategy’s approach remains unchanged: accumulate during weakness, ignore short-term price action, and avoid structural leverage that could force exits.
The contrast between market fear and Strategy’s balance sheet is stark. While traders are being liquidated en masse and leveraged positions flushed across exchanges, Strategy remains largely insulated from those dynamics.
Being 1.8% away from breakeven may sound precarious in headline form, but in practice it places the company far from any existential pressure. As long as Bitcoin remains above the company’s average cost – and even well below it – Strategy’s ability to hold remains intact.
Saylor’s comments arrive at a moment when confidence across crypto markets is being tested. Yet Strategy’s position illustrates a key distinction: volatility hurts traders, not necessarily long-term holders with patient capital and fixed financing.
Whether Bitcoin rebounds or continues to grind lower, Strategy’s stance reinforces a broader message that has defined this cycle – survival in crypto is less about being right on price, and more about structure, time horizon, and leverage discipline.
For now, Strategy remains standing. And according to Saylor, it plans to stay that way – no matter how low Bitcoin goes.
