What is the ruling on saying that Satan does not deserve to exit the Fire, and does this statement narrow the concept of God's mercy?

Satan and other disbelievers who died upon disbelief will abide eternally in Hellfire and do not deserve to emerge from it. Allah Almighty's mercy encompasses all things, but in the Hereafter, He specifically bestows it upon His believing servants and withholds it from disbelievers as a recompense for their disbelief, as Allah Almighty says: "And My mercy encompasses all things. So I will decree it for those who fear Me and give zakah and those who believe in Our verses." Thus, they will not enter Paradise, as Allah Almighty says: "Indeed, those who denied Our verses and were arrogant toward them - the gates of the heaven will not be opened for them, nor will they enter Paradise until a camel enters into the eye of a needle. And thus do We recompense the criminals."