The strategy’s founder, Michael Saylor, rejected the assumption that stablecoins pose a competitive threat to Bitcoin’s long-term price trajectory, taking issue with ARK Invest CEO Cathie Wood’s revision of her 2030 Bitcoin price target, lowering her forecast by $1.5 million. At $1.2 million.
The controversy erupted due to fundamental disagreement over whether the stablecoin sector – which is worth $308 billion and currently accounts for 30% of transaction volumes using digital currencies – affects the use of Bitcoin, or whether it operates in a completely separate economic class.
Cathie Wood’s interview with CNBC on November 6 sparked controversy when she explained why she slashed her 2030 price forecast by $300,000, saying, “Stablecoins are now playing some of the role that we thought Bitcoin would play,” highlighting the rapid adoption of stablecoins in hyper-inflated, centrally controlled emerging markets.
Despite this adjustment, its positive expectations remained indicating an increase of 1,100% from current levels, which maintains confidence in institutional investments that are steering 6.5% of global assets towards Bitcoin.
Cathie Wood of ARK Invest: "Given what’s happening with stablecoins, which serve emerging markets in a way we thought Bitcoin would, I think we can reduce our Bitcoin projection by 300,000. We are starting to see institutions focusing on new payment rails with stablecoins at… pic.twitter.com/3LNUb9TdQu
— Crypto-Gucci.eth ᵍᵐ
(@CryptoGucci) November 6, 2025
Digital capital vs digital financial system: two distinct economies
Saylor’s response on CNBC on November 14 also showed clear disagreement, describing the digital asset landscape as divided into complementary sectors rather than competing forces.
He also described Bitcoin as “Digital capital“It represents digital gold, because its primary function is to be a digital credit tool that generates returns, as is the case with Strategy’s products, which is completely different from what it calls itself.”Digital financial system“It is based on blockchain systems operating according to the Proof of Stake (PoS) algorithm, such as Ethereum Blockchain, Solana Blockchain and Binance (BNB Chain), on which stable currencies, digitally represented securities and decentralized finance (DeFi) protocols operate.
“No rich person would want to buy a stable currency instead of stocks, real estate or other assets,” Saylor explained, emphasizing that stable currencies fulfill the need to transact, while Bitcoin serves the role of a store of value.
Saylor believes that these two sectors serve fundamentally different investor needs, as stablecoins provide programmable cash balances used in financial payment and settlement activities, while Bitcoin allows for investment in a digital asset characterized by scarcity.
While Saylor expects the market value of stablecoins to rise from hundreds of billions to trillions of dollars, he ruled out direct competition with digital assets backed by Bitcoin.
The strategy stands out for continuing to pursue this assumption aggressively, acquiring 8,178 Bitcoins for $835.6 million, at an average price of $102,171 per coin, earlier this week.
With this deal, the company’s total holding reaches 649,870 Bitcoins as of November 16, with a total value equivalent to $48.37 billion and a total average price equivalent to $74,433 per coin, representing approximately 3.1% of the total Bitcoin supply.
The market crisis tests the conviction of institutions
The optimism of the two leaders – Saylor and Wood – faces adverse conditions resulting from recent market volatility, which caused the price of Bitcoin to surpass the $90,000 support level for the first time since last April, leading to the evaporation of 2025 gains and inflicting heavy losses on average investors in Bitcoin Spot ETFs, given that the average cost of investing in these funds is around $89,600.
A 30% drop in the price of Bitcoin from its all-time high of $126,100 in October led to a one-day withdrawal of $254 million in investments from US Bitcoin ETFs on November 17, with withdrawals concentrated in BlackRock’s IBIT and Grayscale’s GBTC funds.
Strategy’s stock price was also negatively affected by the decline in the price of Bitcoin, as its value declined by more than 60% from the highest levels recorded in November 2024, and the net asset value multiplier (mNAV) decreased to just 1.11 times, representing a sharp decline from the 1.52 times rate recorded at Bitcoin’s highest price levels.
Faced with this unprecedented ambiguity, JPMorgan analysts have warned that the company risks being removed from the MSCI USA and Nasdaq 100 indices by January 15, which could cause it to lose investments worth $2.8 billion, after MSCI index providers proposed excluding companies in which digital assets exceed 50% of the value of their balance sheet assets, which involves directly targeting institutions. Digital asset vaults like Saylor.
Michael @Saylor pushed back on concerns that Wall Street’s growing presence in Bitcoin has amplified the asset’s volatility.#Strategy #Bitcoinhttps://t.co/ttN5ApxrDY – Cryptonews.com (@cryptonews) November 19, 2025
Despite these pressures, Saylor maintained his optimistic long-term outlook during an interview with Fox Business, noting that Bitcoin’s annual volatility rate has fallen from 80% in 2020 – when his company’s strategy began buying the currency – to around 50% today.
He said, “The company can withstand a price decline in the range of 80-90% and still operate,” expecting the Bitcoin price to eventually stabilize at 1.5 times the volatility of the Standard & Poor’s Index (S&P 500), while still providing excellent returns.
In response, veteran trader Peter Brandt warned that the strategy could… “Drowned in losses” If Bitcoin continues to mimic the soy bubble model of the 1970s, Brandt has often cited a comparison.
Currently, market participants are monitoring whether financial market institutions will continue to support aggressive Bitcoin accumulation strategies in light of recent changes in the crypto markets and the possibility of a negative reversal in the trend of currency-related investments.
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