Michael Saylor admits Strategy shareholders ‘would suffer’ if Bitcoin were to ‘fall 90% and stay there for 4 or 5 years’

**Michael Saylor Admits MicroStrategy Shareholders Would 'Suffer' if Bitcoin Crashed 90% and Stayed Down**

Michael Saylor, Executive Chairman and co-founder of MicroStrategy, has long been one of the most vocal advocates for Bitcoin, positioning his company as a leading corporate holder of the cryptocurrency. But in a recent candid admission, Saylor acknowledged the potential risks to shareholders if Bitcoin were to suffer a dramatic and prolonged collapse in value.

In an interview, Saylor said that MicroStrategy’s shareholders "would suffer" if Bitcoin were to “fall 90% and stay there for four or five years.” Investors and analysts, many of whom have long debated the wisdom of MicroStrategy's aggressive Bitcoin accumulation strategy, have discussed the remark. ### A Bold Bitcoin Bet

Since 2020, MicroStrategy has invested billions of dollars in Bitcoin, transforming itself from a software company into a de facto Bitcoin holding vehicle. Saylor has consistently promoted the move as a hedge against inflation and a strategy for long-term value creation.

As of early 2025, the company holds over 200,000 BTC, purchased at an average price of around \$33,000 per coin. This massive bet has been celebrated during bull markets, when Bitcoin's price surged, lifting MicroStrategy’s stock price along with it. However, in the event of a prolonged bear market, it also places the company and its shareholders at significant risk of extreme downside. ### The Risk Recognized Saylor’s recent admission stands out because it goes against his usual bullish tone. He has repeatedly claimed that Bitcoin is “digital gold” and the most secure asset of the 21st century. However, by stating that shareholders could suffer if Bitcoin fell 90% and remained low for years, he acknowledges the potential for severe consequences.

This scenario, while unlikely in Saylor's view, is not impossible. A 90% drop from current prices would bring Bitcoin down to under \$7,000—a level not seen since 2018. If it stayed there for years, the impact on MicroStrategy’s balance sheet, market valuation, and investor confidence could be devastating.

### The Long-Term Vision vs. Short-Term Pain

Saylor remains a long-term believer in Bitcoin, and his strategy is based on the conviction that Bitcoin will outperform all other assets over time. But even he concedes that such a future is not guaranteed. In his recent comments, he emphasized that Bitcoin needs to be viewed as a long-duration asset, and investors should be prepared for volatility.

“If you don’t have a four-year time frame, you probably shouldn’t be investing in Bitcoin,” Saylor has often said. But the idea that it could fall 90% and *stay* there for four or five years adds a new dimension of risk—one that long-term holders and institutional investors must now weigh carefully.

### Investor Reactions Mixed

Reactions to Saylor’s comment have been mixed. Some see it as a rare moment of transparency from a CEO who has often been accused of evangelism rather than realism. Others worry that the admission might shake investor confidence, particularly if Bitcoin's price begins to show signs of sustained weakness.

“It's refreshing to hear him acknowledge risk,” said one market analyst. “But for many retail investors, the idea that they could be stuck holding the bag for years if Bitcoin crashes might be unnerving.”

On the other hand, Saylor’s loyal followers argue that volatility is simply part of the game. “He’s not saying anything new,” one pro-Bitcoin investor tweeted. “Bitcoin is volatile. Always has been. But the long-term thesis remains intact.”

### A Test of Conviction

Saylor’s strategy has always required conviction—both from himself and from shareholders. His company has issued debt and sold shares to acquire more Bitcoin, betting that the asset would eventually become a trillion-dollar reserve currency. That strategy has worked during bull runs, but could become a serious liability if Bitcoin’s price crashes and remains depressed.

MicroStrategy's Bitcoin holdings could be underwater for years in this scenario. This would affect not only the company's balance sheet but also investor sentiment, possibly triggering share price declines and even legal scrutiny depending on how the investments were financed.

### Conclusion

Michael Saylor’s frank admission that MicroStrategy shareholders would suffer in the event of a prolonged 90% Bitcoin drop is a sobering reminder of the risks inherent in tying a company's fortunes to a single volatile asset. While he remains confident in Bitcoin’s long-term potential, his comments highlight a crucial truth: with great upside potential comes equally significant downside risk.

For investors, it’s a moment to reconsider the balance between faith in innovation and the realities of financial risk. Saylor’s vision may still play out, but as he now openly admits, it could be a bumpy—and painful—ride if things go wrong.