Michael Saylor has a message for anyone worried about Bitcoin's stomach-churning price swings: that's exactly the point.
The Executive Chairman of Strategy Inc. (MSTR) argued Wednesday that Bitcoin (BTC)'s volatility isn't some unfortunate side effect - it's the feature that makes the cryptocurrency work. Without those wild price movements, he says, Bitcoin wouldn't deliver the "high performance" that attracts investors in the first place.
The Long Game on Bitcoin
Speaking in a CoinDesk interview shared on X, Saylor offered some straightforward advice for navigating the current market correction. If you're buying Bitcoin, plan to hold it for at least four years. Better yet, think ten 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 prominent Bitcoin advocate added.
It's advice that comes at a particularly relevant moment, given that Strategy shares have dropped 40% over the past month.
Why Volatility Creates Opportunity
Here's where Saylor's argument gets interesting. He contends that if Bitcoin grew at a steady, predictable 2% per month with no volatility, it would actually be worse for most people. Why? Because "conventional finance investors" would have already swooped in and dominated the entire market.
"Warren Buffett would own all of it and there wouldn't be an opportunity for us," Saylor said.
In other words, the volatility that makes Bitcoin terrifying is also what keeps it accessible. The price swings scare away traditional investors who can't stomach the risk, which creates openings for believers willing to ride out the turbulence.
Strategy Under Pressure
Saylor's comments arrive as his company faces mounting criticism for what some call a "highly leveraged" Bitcoin bet. Economist Peter Schiff questioned earlier this week whether Strategy should even be included in global equity benchmarks, given how tightly its performance is tied to cryptocurrency prices.
The concerns aren't purely theoretical. JPMorgan analysts recently warned that Strategy risks getting delisted from major equity indices due to ongoing sell-offs. At Wednesday's close, shares of Strategy (MSTR) fell 3.74% to $175.64 during regular trading, though they recovered slightly in after-hours trading, rising 0.75% to $176.96.
But Saylor isn't backing down. He defended the company's business model last week, stating that as long as Bitcoin increases by just 1.25% annually, Strategy can maintain its dividend payments indefinitely while continuing to boost shareholder value.
Current Market Performance
As for Bitcoin itself, the cryptocurrency was trading at $91,794.94 at the time of reporting, up 4.25% over the previous 24 hours.
The question for investors is whether Saylor's long-term thesis will hold up. Strategy maintains a weaker price trend across short, medium and long timeframes compared to other Bitcoin treasury companies like American Bitcoin Corp. (ABTC). The company's fate remains closely tied to whether Bitcoin's volatility will ultimately prove to be the feature Saylor promises, or the bug critics fear.