Michael Saylor explains the main cause of Bitcoin’s drop
June 17, 2026
During an appearance at BTC Prague, Michael Saylor discussed two pressing issues: the recent sale of Bitcoin by Strategy, listed on Nasdaq as MSTR, and his assessment of why Bitcoin has struggled in the current year. In a conversation with Natalie Brunell, Strategy’s co-founder and executive chairman, Saylor directly addressed criticism regarding the company’s decision to sell 32 Bitcoin in late May. He acknowledged that his previous advice not to sell Bitcoin to retail investors wasn’t contradictory but rather aimed at individual holders, not a Bitcoin treasury company’s operations. According to Saylor, Strategy’s main objective is to generate Bitcoin-backed credit, not accumulate Bitcoin as a passive asset.
Saylor emphasized Strategy’s status as the largest holder and buyer of Bitcoin globally, asserting that the company would continue to act in a rational manner. He justified the need to sell Bitcoin when necessary as a means to uphold preferred dividends and maintain credibility with credit investors. In his view, this flexibility is crucial for the business model’s sustainability. Additionally, Saylor addressed concerns about recent capital raises diluting Bitcoin per share, explaining that short-term dilution is accepted in exchange for long-term financial stability and the ability to issue credit and acquire more Bitcoin in the future.
Highlighting the internal dynamics of Strategy’s operations, Saylor also delved into his perspective on why Bitcoin has underperformed this year. He attributed this trend to significant AI fundraising rounds at companies such as OpenAI, Anthropic, SpaceX, Alphabet, and Meta, which have diverted capital away from Bitcoin. Saylor estimated that 1% to 2% of Bitcoin’s capital outflow had been absorbed by the AI fundraising cycle, a temporary phase lasting 12 to 24 weeks. He anticipated that as lockups expire and early AI investors realize their gains, capital would flow back into Bitcoin, leading to a reversal of the trend towards the end of the year.
Finally, Saylor expressed optimism about the growth of Bitcoin-backed credit and yield products in 2026, labeling it as the most exciting year in Bitcoin’s history. He foresees a positive shift in market sentiment and increased investment in Bitcoin as AI fundraising rounds conclude and capital flows back into the cryptocurrency. Overall, Saylor’s insights shed light on the challenges and opportunities facing Bitcoin in the current economic landscape.