TLDR
- Michael Saylor predicts Strategy will join S&P 500 as Bitcoin adoption grows.
- Strategy’s Bitcoin holdings remain strong despite missing S&P 500 inclusion.
- Saylor praises his company’s “bullet-proof” balance sheet amid market conditions.
- Saylor believes Bitcoin’s growth will continue as more companies embrace it.
Michael Saylor, executive chairman of the Bitcoin treasury firm Strategy, addressed the company’s recent exclusion from the S&P 500 index. Saylor was optimistic about the future, suggesting that Strategy will eventually make it into the index. He does not believe the rejection was due to bias against cryptocurrency, explaining that he did not expect to be added in the first quarter of eligibility.
Saylor noted that Strategy is a novel concept, and while the company is still new to many, it is gaining support from banks, politicians, and credit rating agencies each quarter. “Every quarter, we make some new believers,” he told CNBC’s Becky Quick. Saylor added that the company’s journey toward inclusion in the S&P 500 would continue to progress, with more recognition expected over time.
Bitcoin Treasury Firm Strategy’s Financial Resilience
Despite the S&P 500 rejection, Strategy remains focused on its core strength—its Bitcoin holdings. Saylor pointed out that the company has a “bullet-proof” balance sheet, built through years of experience managing risk and leveraging its Bitcoin treasury.
The company’s ability to endure the volatility of the crypto market, particularly during the “crypto winter,” has provided it with the financial resilience needed to thrive.
Saylor reflected on the past market cycle when Bitcoin fell from $66,000 to $16,000, explaining that Strategy took advantage of the downturn and bought Bitcoin at the bottom. The firm’s leverage strategy is not based on debt but on its preferred stock, giving it flexibility and stability in challenging market conditions. Saylor expressed confidence that the price of Bitcoin would continue to rise as more companies and individuals embrace it.
Strategy’s Bitcoin Holdings and Market Position
Strategy’s Bitcoin holdings are one of the largest in the corporate world, and the company’s focus on acquiring Bitcoin has led to substantial growth. As of the latest filing, Strategy holds over 638,000 BTC, making it one of the largest Bitcoin holders globally. Saylor believes that the more people learn about Bitcoin and the more companies adopt it, the higher its value will rise.
Strategy has been consistently adding to its Bitcoin position, with a recent purchase of 1,955 BTC for $217 million.
This purchase demonstrates the company’s continued commitment to growing its Bitcoin reserves, despite facing criticism from some investors over its stock performance. Saylor remains confident in the long-term value of Bitcoin and sees this as a key factor in Strategy’s future success.
Rejection of Strategy and Robinhood’s S&P 500 Inclusion
On September 5, Strategy was passed over for inclusion in the S&P 500, with Robinhood Markets being added instead. The decision raised questions about the criteria for inclusion in the prestigious index, especially considering Strategy’s strong financial performance.
Robinhood, which also operates in the cryptocurrency space, was added despite its smaller market capitalization compared to Strategy.
Strategy’s performance has been strong, with Saylor noting that his company has outperformed both the S&P 500 and Bitcoin in recent years. Despite the setback, Saylor remains confident that Strategy’s performance will speak for itself over time. He also noted that the inclusion process is just a matter of formal recognition and that Strategy’s continued growth and Bitcoin accumulation will likely lead to inclusion in the future.
