Why Michael Saylor likely won't panic over bitcoin price drop
The recent sharp drop in the bitcoin price to below $20,000 per coin has become a real headache for Michael Saylor and his company MicroStrategy, which owns one of the largest public bitcoin holdings.
In fact, the current value of MicroStrategy's bitcoin reserves is now lower than the total amount the company spent on their purchase. This means that Saylor's investments in the first cryptocurrency have officially gone into the red. However, despite this, experts doubt that Saylor will panic and hastily sell his bitcoins.
The main reason why Saylor is likely to remain calm is that the price drop has not yet had a critical impact on MicroStrategy's business. Although the decline in the value of bitcoin slows the company's ability to increase its cryptocurrency reserves without diluting shares, it still has enough funds to continue investing in bitcoin.
Moreover, Saylor has repeatedly stated that he views bitcoin as a long-term investment, not a short-term speculative asset. Therefore, he is most likely to stick to his strategy and not panic due to the current price drop.
Expert Opinion
Despite the unfavorable market conditions, MicroStrategy continues to adhere to its course of accumulating bitcoin. Saylor's approach may justify itself in the long run if the price of the first cryptocurrency returns to growth. However, investors should consider the high risks associated with the concentration of assets of one company in such a volatile instrument as bitcoin.