Strategy executive chairman Michael Saylor has expressed confidence that the entry of Wall Street into the Bitcoin market has not negatively impacted its price action or volatility. Saylor stated during an interview with Fox Business on Tuesday that the cryptocurrency is experiencing "a lot less volatility."
This assertion comes at a time when Bitcoin (BTC) has seen a price decline of nearly 12% over the past week, falling to $91,616 and erasing its year-to-date gains.
Saylor recalled that when Strategy began acquiring Bitcoin in 2020, the asset exhibited an annualized volatility of approximately 80%. He noted that this figure has since decreased, now standing around 50%. He anticipates that Bitcoin's volatility will continue to reduce by roughly 5 percentage points every few years as the asset matures. This trend, he predicts, will lead to Bitcoin being about 1.5 times as volatile as the S&P 500 Index, while also offering "1.5 times better performing."
Strategy's Net Asset Value Declines Amid Price Correction
Saylor emphasized the continued strength of Bitcoin, stating, "Bitcoin is stronger than ever." Strategy currently holds 649,870 Bitcoin, valued at $59.59 billion at the time of publication.
The firm's net asset value (mNAV) multiple has decreased to 1.11x, a drop from approximately 1.52x when Bitcoin reached its all-time high of $125,100 on October 5.
Shares of Strategy (MSTR) frequently trade at a premium or discount relative to Bitcoin's price. In line with Bitcoin's recent price slump, MSTR closed Tuesday's trading session at $206.80, marking an 11.50% decrease over the past five days.
Saylor Unconcerned by Potential Bitcoin Downturn
Despite the recent market movements, Saylor expressed no apprehension regarding a significant downturn in Bitcoin's price. He stated that the company is "engineered to take an 80 to 90% drawdown and keep on ticking."
"So I think we're pretty indestructible," Saylor added. He further claimed that the company's leverage is managed such that the risk of 10% to 15% exposure going to zero is "extremely robust."
However, veteran trader Peter Brandt has cautioned that Strategy could face financial difficulties if his analysis proves correct. Brandt has suggested that Bitcoin's chart pattern might mirror the soybean bubble of the 1970s, a scenario that could leave Strategy "underwater."