Michael Saylor Defends Bitcoin-Backed Strategy Amid STRC Price Slump

Saylor took to social media on June 20 to assert that the company’s Bitcoin and cash reserves currently outweigh its outstanding debt by roughly $48 billion. He framed the current market turbulence as a familiar hurdle, drawing parallels to the 2022 crypto winter when the firm’s debt briefly outpaced its assets by $300 million. Since that low point, the company has raised over $60 billion to aggressively expand its Bitcoin position.

Despite these assurances, the financial viability of the firm's model remains a point of contention. Peter Schiff has fueled the fire by suggesting Saylor could face regulatory scrutiny over the promotion of STRC shares. Meanwhile, Arca CIO Jeff Dorman floated the possibility that the firm may eventually need to offload between $3 billion and $4 billion in Bitcoin to alleviate pressure on its capital structure. While some observers have drawn unflattering comparisons between STRC and the collapsed Terra ecosystem, vocal Bitcoin advocates like Samson Mow are dismissing these claims, labeling the security a brilliant instrument for capturing Bitcoin's upside without the traditional volatility.