Saylor says Bitcoin gains could lower Strategy funding costs and support more BTC buys

Rising Bitcoin prices and lower funding costs could create a virtuous cycle that further strengthens Bitcoin-holding companies such as Strategy, Strategy CEO Michael Saylor said. Saylor said the key is appreciation in Bitcoin, whose supply is capped. If a company raises fresh capital to buy more Bitcoin, demand increases, and if the price rises, the value of the company’s holdings and its ability to raise additional funds could also improve. Saylor added that growing market understanding and acceptance of preferred shares such as STRC is another variable. As analyst and institutional participation expands and trading and distribution infrastructure improves, the extra yield investors demand could fall, reducing Strategy’s funding costs. If corporate value rises, the company could raise capital on more favorable terms to buy more Bitcoin or reduce higher-cost debt. Saylor described Strategy’s $152 million STRC redemption disclosed on Sept. 28 as an example of this active capital management strategy. He added that for the structure to remain sustainable, returns from holding Bitcoin must exceed funding costs and dilution from share issuance. Because Bitcoin does not generate interest income on its own, price appreciation and efficient capital management remain the key factors, Saylor said.