Michael Saylor commits to “forever” Bitcoin investment, seeing it outshine traditional assets with MicroStrategy’s strategy bolstering its value.
In a recent discussion with Bloomberg on February 20, Michael Saylor, the Executive Chair of MicroStrategy, revealed his firm’s strategy regarding Bitcoin, emphasizing a continuous and “forever” investment in the cryptocurrency. Saylor’s stance on Bitcoin is clear; he sees no value in divesting from what he perceives as the leading asset in the digital currency space. His commitment comes in light of MicroStrategy’s significant profit from Bitcoin investments, nearing a $4 billion mark in unrealized gains.
MicroStrategy, known for its business intelligence software, made headlines as the first publicly traded company to invest heavily in Bitcoin back in 2020. Holding approximately 190,000 BTC, valued at around $9.88 billion at present rates, the firm initially invested at an average price of $31,224 per Bitcoin. This investment strategy has not only positioned MicroStrategy as a major player in the cryptocurrency market but also reflects Saylor’s belief in Bitcoin’s superiority over traditional assets like gold, real estate, and the S&P 500.
The Bullish Case for Bitcoin
Saylor articulates a bullish perspective on Bitcoin, asserting its technical advantages over conventional asset classes, despite its market capitalization trailing behind those of gold and real estate. He argues that Bitcoin’s superior technology will continue to attract capital from these traditional assets, envisioning a future where Bitcoin stands as the preferred choice for investors.
This prediction is partly based on the dynamics of supply and demand within the Bitcoin ecosystem. Saylor notes the significant demand for Bitcoin, especially from exchange-traded funds (ETFs) focusing on the cryptocurrency, which often surpasses supply from miners by up to tenfold. This imbalance, according to Saylor, underscores Bitcoin’s growing appeal and its potential to reshape investment landscapes.
Moreover, Saylor dismisses concerns about the increasing difficulty for MicroStrategy to purchase Bitcoin amidst rising demand facilitated by spot ETFs. He highlights these financial products as gateways for institutional capital into the Bitcoin market, fostering a digital transformation of capital that benefits the broader digital economy. Saylor’s optimism is rooted in the belief that the influx of traditional capital into Bitcoin and other digital assets will benefit all stakeholders, buoying the entire market.