MicroStrategy CEO Michael Saylor Continues Bullish Stance on Bitcoin, Dismisses Sell-off Fears
Summary:
MicroStrategy CEO Michael Saylor reaffirmed his commitment to hold Bitcoin, despite the firm's holdings nearing $4 billion in unrealized profit. In a recent Bloomberg interview, he emphasized Bitcoin's technological superiority compared to traditional assets like gold, the S&P 500, and real estate. He also expressed confidence that capital will continue migrating from these asset classes towards Bitcoin. As of Q4 2023, MicroStrategy reportedly held 190,000 BTC, costing the firm a total of $5.93 billion. Saylor further highlighted the impact of Bitcoin ETFs in attracting institutional capital to the Bitcoin ecosystem. Despite potentially increasing competition for Bitcoin holdings, Saylor dismissed concerns, citing MicroStrategy's "levered operating strategy" for digital asset investments.
MicroStrategy's Michael Saylor has declared his intent to continuously buy Bitcoin (BTC), unperturbed by the fact that his firm's assets have bloated to nearly $4 billion in unrealized profit. He shared his buy-and-hold strategy during a Bloomberg interview on February 20, where he confirmed the continuity of his firm's investment in its 190,000 BTC stash, worth approximately $9.88 billion at current prices. Saylor stated his optimism for Bitcoin, describing the digital asset as more technologically superior than gold, the S&P 500, and real estate, despite these assets having a higher market capitalization than Bitcoin's $1 trillion. Saylor articulated his view that capital will continue to gravitate from these assets classes towards Bitcoin. In his opinion, there was no logical reason to liquidate a winning strategy to invest in less successful ones. Back in 2020, MicroStrategy, which specializes in business intelligence software, made a bold move as the first publicly traded company to start buying Bitcoin. At the end of 2023's fourth quarter, the firm reportedly held 190,000 BTC, purchased at an average price of $31,224 per coin, amounting to a total expenditure of $5.93 billion. According to data provided by HODL15Capital on February 16, established Bitcoin exchange-traded funds (ETFs) based in the United States, excluding the Grayscale Bitcoin Trust (GBTC), held around 270,000 BTC. Saylor pointed out that the demand for Bitcoin brought on by the increased interest in ETF products often overshadowed supply from miners by up to tenfold. Despite the probability of ETFs increasing the competition for Bitcoin holdings, Saylor remained unfazed concerning MicroStrategy's acquisitions, stating the company's "levered operating strategy" for the digital asset investment. He expressed that the emergence of spot ETFs had cleared the way for institutional money to enter the Bitcoin network, facilitating the digital transformation of capital. In his words, every single day, hundreds of millions in capital funds migrate from the traditional analog ecosystem to the digital economy. For Saylor, this represents a positive shift likely to benefit all stakeholders.
Published At
2/21/2024 9:15:17 AM
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