At this point, Saylor said that rising Bitcoin prices and falling funding costs could create a positive cycle that further strengthens Bitcoin-owning companies like Strategy.
Saylor stated that the first key point is the appreciation of Bitcoin, which has a limited supply. He also noted that STRC is a significant variable in this structure, and according to Saylor, increased investor interest and market acceptance of the product could reduce the additional return demanded by investors. This could help lower Strategy’s funding costs. As the company’s market capitalization and access to capital strengthen, new capital can be raised under more favorable conditions, leading to increased Bitcoin purchases.
At this point, Saylor cited Strategy’s $152 million STRC buyback announced on September 28 as an example of this active capital management strategy. Emphasizing that Bitcoin itself does not generate interest income, Saylor argued that appreciation in $BTC price and efficient capital management remain fundamental elements of Strategy’s Bitcoin-focused financing model.
We Will Continue to Be a Net Buyer!
Finally, Saylor stated that Strategy remains a net buyer of Bitcoin. However, Saylor noted that accumulating more $BTC will become exponentially more difficult as the Bitcoin price rises.
He also added that the company’s securities and stock price would grow along with Bitcoin. Saylor further noted that there is a complementary structure between Bitcoin, STRC, and MSTR. Accordingly, while the rise in Bitcoin’s price makes new $BTC purchases more costly, the appreciation of Strategy’s financing instruments could make it easier for the company to secure capital for new purchases.
*This is not investment advice.