Strategy chairman Michael Saylor has pushed back against criticism of companies using equity or debt to acquire Bitcoin, arguing that such decisions reflect rational capital allocation rather than speculation. Speaking on a recent podcast appearance, Saylor said corporations with excess cash may benefit more from allocating funds to Bitcoin instead of low-yield Treasurys or share buybacks.
Capital Allocation at the Core of the Argument
Saylor compared corporate treasury management to individual investing, emphasizing that company size or profitability should not disqualify firms from holding Bitcoin. He challenged the idea that unprofitable companies deserve heightened scrutiny, stating that Bitcoin gains can offset operating losses. He noted that a firm losing money operationally could still strengthen its balance sheet if Bitcoin appreciation exceeds those losses.
According to Saylor, buybacks and conservative cash holdings may worsen outcomes for struggling businesses. He argued that repurchasing shares in a loss-making company can amplify losses, while Bitcoin presents a fundamentally different risk-reward profile. He also criticized what he described as a double standard, where companies avoiding Bitcoin face little backlash while adopters are heavily scrutinized.
Strategy, which began accumulating Bitcoin in 2020, remains the largest corporate holder with more than 687,000 BTC. Across public markets, companies collectively hold around 1.1 million Bitcoin, highlighting Bitcoin’s growing role as a long-term corporate treasury asset, despite recent market volatility and slower adoption momentum.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.