Strategy CEO on bitcoin buying strategy amid crypto volatility

Published: Tuesday, December 2, 2025 · 6:30 PM  |  Updated: Tuesday, December 2, 2025 · 6:30 PM

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00:00 Speaker A

As we talked about, Bitcoin is going up today, right? It’s been on this downswing recently. But when you do sort of um scenario preparation, simulation, what have you, and you think about Bitcoin going to 80,000 or even going to 60,000 or even going to 40,000 or lower, what would these various levels mean for your ability to pay that dividend?

00:26 Speaker B

I I think there’s there there’s two things. There’s Bitcoin price and then there’s the price of our our equity which drives MNAV, right? We’ve seen this in previous scenarios where Bitcoin price goes down, uh has a massive drawdown, but our MNAV is still above one and so it’s accretive to our shareholders to issue equity, to pay dividends, to buy Bitcoin. Uh and so in fact, let’s let’s say Bitcoin price, you know, hypothetically, hope it doesn’t goes to 40k and our MNAV is 2X, it’s actually more accretive to buy Bitcoin, issue equity to buy Bitcoin at MNAV of 2X when Bitcoin is 40k. Uh so that that that’s sort of probably the primary difference here. It’s not just a function of Bitcoin price, it’s a function of our equity price. And then, you know, the big question becomes, well what what drives your MNAV? Right? And and what drives our MNAV is the ability for us to be creative and our in adding Bitcoin per share, right? Do people believe that we can add Bitcoin per share? Can we raise more capital either through equity financing or debt financing or now preferred financing and do they believe that the management team is doing things in a thoughtful uh way and and a transparent way. So that’s what we really focus on and so, yeah, I think when Bitcoin price goes down, we see that as a buying opportunity as long as we feel bullish about the enterprise overall.

01:21 Speaker A

Do you, um, are you concerned at all that as that MNAV has compressed, that, you know, despite the sort of management that you’re talking about, that your stock will be less appealing even if you do acquire more Bitcoin because people can buy an ETF that’s a more of a one- to- one to Bitcoin, they can buy cryptocurrencies themselves. I mean, how much are you concerned about that and and what if anything can you do about it?

01:46 Speaker B

Yeah, we’ve faced this question, you know, some folks who have been following a strategy for the last year. Some have been following us for the last five years, some for 20 years. Those who have been following us for the last five years have seen this exact sort of movie play once before. We had a crypto winter in 2022, it went through 2023. At the beginning of 2024, we had spot Bitcoin ETFs launched. IBIT is is probably the best known of the bunch. And the same exact question arose, which is what happens in a Bitcoin winter and what happens when your MNAV starts to compress and there are alternatives out there. And and I think this is probably one of the maybe less understood notions about strategy and we see it now coming through discussions of MSCI and the indexes. We’re not an ETF. We’re not a closed-ended fund. If you were, you could see the company trade to MNAV or even below MNAV. We’re an operating company that creates, our products is Bitcoin-backed securities, right? And so in that particular case, the valuation of the company shouldn’t be equal to the underlying assets. The valuation of the company should be equal to the ability to grow the underlying assets, grow income and grow the business. Uh and so we look much more like a Mag 7 tech stock than a closed-ended fund or an ETF. And and and I’m not sure exactly why people don’t quite understand that, except many people don’t understand Bitcoin and many people don’t understand financial markets. Uh, but but we are an operating company that creates Bitcoin-backed securities and we should trade at a valuation equal to our ability to grow Bitcoin per share and our ability to grow our operating income, just like any other operating company would be conceived and thought of.

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