MicroStrategy Issues Bitcoin Guide Highlighting Potential 93% Crash

MicroStrategy, now operating under the name Strategy, has published a Bitcoin investor guide that stresses the possibility of a severe price correction. The document, shared by Executive Chairman Michael Saylor, focuses on historical losses, custody risks, and appropriate position sizing.

Key Warning in the Guide

The guide notes that Bitcoin has previously suffered a 93.1% decline, the deepest drop in its trading history, which occurred at the 2011 low. It also cites a worst‑case one‑year return of minus 83.6%.

Emphasis on Survival

According to the guide, the primary concern for investors is surviving large interim losses, even if long‑term appreciation is expected. It warns that correct market direction does not guarantee profit when leverage, option decay, corporate structure, counterparty risk, fees, or forced liquidation are involved.

Context from Michael Saylor’s Experience

Saylor references a past corporate crash: on March 20, 2000, MicroStrategy restated three years of revenue, causing its stock to fall 62% in a single day. The SEC later charged the company with fraud, resulting in a disgorgement payment of $8.28 million and a $350,000 penalty.

Current Bitcoin Holdings

• Strategy holds 845,050 BTC as of September 7.
• Average cost per BTC is $75,412.
• Current market price is around $77,106, leaving the position roughly 2% above cost.
• The holding is about 38.8% below the company’s October 2025 record price.

Recent Purchasing Activity

Strategy resumed buying Bitcoin on August 31, acquiring 4,603 BTC at an average price of $80,318. The buying period lasted only one week, and those purchases are already at a loss relative to the current price.

Potential Conflict of Interest

The guide also serves as a product menu, offering Strategy’s common and preferred stock tied to its Bitcoin treasury. The company discloses that it benefits from higher Bitcoin prices, creating a contrast between the warning of a 93% crash and its own exposure to price appreciation.

Guide Content Overview

The investor guide covers Bitcoin’s monetary properties, investment case, market structure, portfolio role, custody considerations, and associated risks.