Michael Saylor Said That He Will Buy All The BTC. What’s the Catch?

Michael Saylor of Strategy just shocked the crypto community with his outrageous promise. According to Saylor, BTC will never drop as low as $1 again. He even bets that if the coin drops that low, he will buy all the BTCs in circulation then. Even though the statement qualifies as an exaggeration, it still sent shockwaves through the industry.  

The statement was not just a mad man’s ranting. It is a calculated addressing of concerns regarding his firm’s leverage and liquidation risk amidst a market downturn. Saylor made this outrageous comment on a Podcast. He said, “A lot of people don’t really think. They’re like, ‘Oh, my God, MicroStrategy is gonna get liquidated on Bitcoin.’ It’s like, well, dude, no. Bitcoin could go to $1 a Bitcoin, we’re not getting liquidated. We’re just gonna buy all the Bitcoin.” He further stated that this move will help the firm and allow BTC to rise again.  

Why Saylor Makes Sense? 

Saylor’s commentary might sound outrageous. However, his prediction that BTC will never drop to $1 again is not outrageous. First, BTC is backed by strong fundamentals, such as institutional adoption and a fixed supply of 21 million coins. These have allowed the token to sail through some terrible storms.  

Moreover, megacorporations hold billions in BTC. Therefore, firms like Microstrategy, Fidelity, and BlackRock will save the day even if the price drops. Furthermore, BTC mining is cost-intensive. Therefore, mining would stop if the token falls to $1, which can help stabilize the price. Lastly, every holder must panic sell if BTC falls to $1 since BTC currently has a $1.6 trillion market cap. All in all, BTC falling to $1 is completely unrealistic.  

The Cascading Effect 

While BTC might not fall to $1, it is certainly not in a good spot. In the last week of February, the token fell from the $90k-$100k bracket to $84,000. This is a considerable drop, and it has put investors on edge. However, analysts believe that this is part of a price correction. Therefore, the only thing to do now is to wait and watch.