Michael Saylor’s Bitcoin strategy has been in focus since the recent Bitcoin collapse. There has been speculation about what might happen to Saylor Corporation, Strategy (MSTR), and its Bitcoin holdings if the flagship cryptocurrency continues to collapse.
Schiff Predicts Saylor’s Strategy Will Go Bankrupt Amid Bitcoin Collapse
in Share Xa famous economist Peter Schiff He stated that the entire strategy business model is a scam. He went on to challenge Saylor to discuss this proposal with him. He added that no matter what happens to Bitcoin, he believes the strategy will eventually go bankrupt. It is worth noting that MSTR’s NAV recently fell below the value of its Bitcoin holdings, putting Saylor’s strategy at risk.
Saylor’s strategy has always benefited from trading at a higher price than her Bitcoin holdings. However, with mNAV now trading below 1, there are concerns about what might happen to the company if the Bitcoin bear market continues. last week, Arkham suggested That Saylor and his company were dumping BTC. but, Saylor was quickly fired These rumours, explaining that they are not true.
Saylor also stated that Strategy bought Bitcoin every day last week despite the BTC collapse, which the company confirmed this week when it announced… Purchase worth $835 million. This is its largest purchase since July, when it bought $2.46 billion worth of Bitcoin. However, the company bought these coins at an average price of $102,171, which is much higher than the current price of BTC.
This latest purchase resulted in the loss of a significant amount of Strategy’s Bitcoin supply. Cryptoquant data It shows that 43% of Saylor’s Bitcoin holdings are held at a loss, while 57% are at a profit. This is based on the average purchase price per purchase rather than the total. Notably, the average purchase of the company’s total Bitcoin holdings is $74,433.
It is still possible for BTC to fall below the average buy price of the strategy
Veteran trader Peter Brandt predicted That Bitcoin could fall below $50,000, putting Strategy’s BTC holdings underwater. Brandt noted that Bitcoin could test Saylor “severely” as it drops below its average buy price. Trader A explained: Drop below $50,000 It can occur if the recent violation of equivalent progress is similar to past events.
Bitcoin falling below the strategy’s average purchase price could put the company at risk of having to unload its holdings to pay off its debt. Cryptographic analyzer Dom Kwok claimed Saylor would have to sell its bitcoin to make the interest payments. He added that Treasury companies It cannot operate when mNAV falls below 1, causing either a sell-off of Bitcoin or bankruptcy.
Cryptographic analyzer Mana warned The market is about to witness the collapse of the strategy. He claimed that investors are withdrawing while the company’s profits bleed. As such, he advised market participants to dispose of their MSTR shares.
At the time of writing, Bitcoin is trading at around $91,400, rising over the past 24 hours, according to Data From Coin Market Cap.
Featured image from Pixabay, chart from Tradingview.com
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