When bitcoin (BTC) was above $84,000, Technique (previously MicroStrategy) founder Michael Saylor mentioned, “sell a kidney if you must, but keep the bitcoin.” Yesterday, BTC hit $63,000.
Since his February 27, 2025 recommendation, BTC has crashed by $19,000, and his firm has misplaced $20 billion in market capitalization.
Technique’s February 2025 holdings (499,096 BTC) have declined in worth by 22% and incinerated $9 billion of his shareholders’ wealth.
One other $11 billion in market capitalization evaporated as Technique raised extra capital for acquisitions, and buyers paid much less premium for MSTR relative to its BTC holdings: 1.5x then to below 0.9x at the moment.
Extremely, Saylor’s lack of $9 billion by deciding “keep the BTC” is a greater quantity than the corporate’s precise market cap losses of $20 billion over the identical time interval.
Saylor was unsuitable to have kidney-selling conviction
Slightly than chorus from including leverage to his already dangerous enterprise when BTC was at $84,000, Saylor insisted on buying extra BTC.
BTC has responded by relentlessly declining.
Technique now owns 717,722 BTC for which it paid over $76,000 apiece. Its whole treasury and the Rube Goldberg machine of convertible debt, most popular inventory, and customary inventory choices has misplaced a minimum of $7.9 billion {dollars} for buyers.
These investing losses are along with the price of working the Rube Goldberg machine itself.
In actual fact, the loss for Technique buyers is considerably larger after adjusting for the compensation of executives, bankers, attorneys, consultants, contractors, occasion planners, compliance officers, operations personnel, media liaisons, assistants, and everybody who helps Technique capitalize itself.
For instance, Technique has to pay $896 million yearly simply to service its curiosity and dividend funds.
It additionally pays tens of tens of millions of {dollars} for government compensation, and has paid for the remainder of its loss-generating, BTC-focused enterprise at further losses for over 5 years.
Particularly, it’s misplaced $7.9 billion {dollars} shopping for all of its BTC and shedding $20 billion in market cap as investor confidence has waned.
