MicroStrategy’s co-founder, Michael Saylor, has recently drawn attention to a significant demand for Bitcoin-backed credit, despite the company’s pause in its six-week Bitcoin purchasing streak. This shift comes as MicroStrategy navigates challenges, including potential exclusion from the MSCI index due to its high cryptocurrency exposure, a notable decline in Bitcoin prices, and increasing scrutiny of its financial strategies.
For the first time since October 6, 2023, Saylor did not announce a new Bitcoin acquisition during his typical Sunday update or Monday confirmation. MicroStrategy currently holds 649,870 BTC, valued at approximately $56 billion, with an average purchase cost of $74,433 per coin. The company’s shares are trading around 70% below their all-time high, and their market valuation is barely above 1, reflecting a challenging financial landscape.
Concerns are mounting as MSCI prepares to implement new digital asset regulations in January 2026, which could impact companies with over 50% of their assets in cryptocurrencies. With MicroStrategy’s exposure at 77%, the risk of being forced out of the index is becoming increasingly tangible.
Saylor’s response to critics of MicroStrategy’s leverage and liquidity comes in the form of a chart highlighting the surge in Bitcoin-backed credit. The chart, which he shared with a tongue-in-cheek caption of “probably nothing,” illustrates the weekly issuance of MicroStrategy’s financial instruments—specifically STRD, STRF, STRK, and STRC. Issuance rose from approximately $3-4 million in mid-September to nearly $20 million by late November, with the floating-rate STRC instrument accounting for over $10.5 million in the last week alone.
This rapid growth in credit demand indicates that institutions are becoming increasingly comfortable using Bitcoin as collateral, even as it remains down over 30% from its peak of $126,198. Saylor’s point is clear: a declining credit market does not produce such robust figures. He emphasizes that MicroStrategy maintains a leverage ratio of only around 15% and has successfully raised $20 billion this year through preferred-share instruments.
In a recent interview with CoinDCX, Saylor addressed the volatility of Bitcoin, describing it as essential for the asset’s performance. “If Bitcoin wasn’t volatile, it probably wouldn’t be high performance,” he stated, asserting that “volatility is Satoshi’s gift to the faithful.”
Looking ahead, market observers are keen to see whether MicroStrategy will resume its weekly Bitcoin purchases. Currently, Bitcoin prices hover around $85,757, while MicroStrategy shares saw a modest increase of 1.6% early Monday.
As the situation develops, the interplay between MicroStrategy’s credit strategy and Bitcoin’s market performance will be closely monitored by investors and analysts alike, highlighting the evolving landscape of cryptocurrency financing.