Michael Saylor： Even if Bitcoin drops by 98%, the company will not face liquidation risks

Odaily Planet Daily News: Michael Saylor, founder of Strategy (formerly MicroStrategy), stated in an interview that the majority of the company's Bitcoin was acquired through equity. For example, currently we have Bitcoin worth $45 billion to $50 billion, while our debt is only $3 billion, and these debts are already backed by assets. So in fact, the amount of Bitcoin we have as collateral is 15 times our debt. And our debt is non recourse, with a term exceeding four years. Even if Bitcoin drops by 98%, the company will not face liquidation risk. The company owns permanent capital. In addition, the company will not lend or pledge Bitcoin to earn interest in the future, and believes that the smartest approach is to issue securities with Bitcoin as collateral. As for whether MicroStrategy will develop its own Bitcoin layer 2 network or support existing Bitcoin layer 2 solutions, Saylor said, I think we will first observe market development. You can consider MicroStrategy as already running on the third layer of Bitcoin. The second layer is an open protocol like Lightning, while the third layer is a proprietary protocol like Binance, Coinbase, or MSTR. So, we already have a three-tier architecture with daily transaction volumes reaching billions of dollars. We recently launched Strike, another three-layer protocol with daily transaction volumes reaching tens of millions, even exceeding $50 million. These are security layers, or three-layer protocols, which are already very powerful and have attracted a certain type of investor. In the future, second tier solutions like Lightning may achieve success, but I believe the real billion dollar opportunity currently lies in the third tier. In addition, Saylor also revealed that I do not hold any other cryptocurrencies. About four years ago, I publicly disclosed that I held 17732 bitcoins at a buying price slightly below $10000 per coin. I don't remember the exact number, but this information can be found in my public tweets. Since then, I have bought some more, but I have never sold them. Therefore, I now hold more Bitcoin than I did at the time, but I have not publicly disclosed how much it has increased. (Wu said)