Amid a continued significant pullback in Bitcoin's price, Michael Saylor, Founder and Executive Chairman of Strategy (MSTR.US), publicly denied on Tuesday that the company would liquidate its Bitcoin holdings due to the decline. He reaffirmed confidence in the firm's financing capabilities and the long-term value of Bitcoin. In an interview, Saylor stated that even if Bitcoin were to fall 90% over the next four years, Strategy would not be forced to sell its Bitcoin. Instead, the company would opt to refinance its debt obligations. "If Bitcoin drops 90%, we will restructure the debt," he said, emphasizing that banks remain willing to extend credit to the company as they recognize the inherent value in Bitcoin's volatility. Strategy has aggressively purchased Bitcoin in recent years by issuing stock and debt, currently holding 714,644 Bitcoins with an average acquisition cost of approximately $76,056. As Bitcoin's price fell below $70,000, down significantly from its all-time high near $126,000 in October of last year, the market has shown clear divergence regarding Strategy's financial model and risk exposure. With increasing downward pressure on Bitcoin, investors betting on a further decline in Strategy's stock price are rapidly growing. According to an analytical report from S3 Partners released on Tuesday, short interest in Strategy has increased by approximately 40% since September 2025. Currently, about 30.5 million shares are sold short, representing roughly 10% of the company's float. Concurrently, Strategy's stock price has faced selling pressure from both bulls and bears, declining about 70% from its 52-week high of $455.9 reached last July, with the latest price at $136.94. S3 noted that earlier shorting activity was primarily hedge arbitrage against Strategy's $8.2 billion convertible bonds, where short sellers sold the stock to hedge against downside risk from holding the bonds. Furthermore, prominent short investor Jim Chanos' Kynikos Associates had engaged in arbitrage by "buying Bitcoin and shorting Strategy," as the company's stock price had traded at a significant premium to its Bitcoin net asset value. However, S3 indicated that this structure has changed. Since mid-September last year, short positions related to convertible bond arbitrage have decreased by approximately 2.5 to 5 million shares, while Strategy's total short interest increased by about 9.2 million shares during the same period. This suggests that new short sellers are making more direct bearish bets against Strategy itself and the price of Bitcoin. "Short sellers are increasingly focusing on the pressures facing Strategy's financing model," S3 stated in the report. Beyond price volatility, a potential risk repeatedly cited by short sellers is the development of quantum computing technology. S3 indicated that ultra-high-power quantum computers could theoretically break blockchain encryption protocols, undermining the security of crypto assets and investor confidence. Every breakthrough in quantum technology could serve as a periodic catalyst for eroding confidence in crypto assets. "If quantum computing advancements are perceived by the market as a negative factor for Bitcoin, investors will face repeated new uncertainties as the technology progresses," S3 noted. Bitcoin has recently experienced sustained high volatility, with market sentiment remaining fragile. On Tuesday, Bitcoin's price remained below $70,000. Previously, Bitcoin briefly rebounded and reclaimed the $70,000 level on Monday, but the rally failed to sustain. Last week, amid a collective pullback in major U.S. tech stocks, Bitcoin fell to $60,000 on February 6, triggering forced liquidations for some crypto assets. Compass Point analyst Ed Engel stated that Bitcoin still risks retesting $60,000 and could potentially drop to the $55,000-$60,000 range. However, he also noted that Bitcoin's average acquisition cost (around $56,000) and its 200-day moving average (approximately $58,000) are converging, making a sustained break below these levels more difficult. Engel believes that high volatility in the cryptocurrency market will persist in the near term, potentially limiting the formation of a clear trend in a single direction.