Advertisement

Microstrategy prepares to hold bitcoin for 100 years

Microstrategy prepares to hold bitcoin for 100 years

Quick take

1 minute read

  • Microstrategy prepares to hold bitcoin for 100 years.
  • The CEO describes it as “the world's best collateral“.

The chief executive officer of Microstrategy, Michael Saylor recently took part in an interview with the CEO of Real Vision, Raoul Pal where he said that his company will hold bitcoin for 100 years and doesn’t have any intention of selling it off.

This comes after the company announced that it had purchased more than 21,000 bitcoins for $250 million earlier this year in August. It only would this investment be now worth closer to $300 million given today’s prices but it shows a significant increase over just two months. Ever since then, the company has bought more bitcoin and in the interview, the CEO said that the reason the decision to invest such a huge sum of money was informed by a discussion between its board of directors and investors in the company as he went on to say:

“This is not a speculation, nor a hedge. It is a deliberate corporate strategy to adopt the Bitcoin Standard.”

Due to the pandemic and the economic uncertainty that came along with it, the company decided that it was time to restructure its Treasury holdings and was looking into numerous different assets that could provide a long-term store of value. Particularly, the company looked at numerous options that had a 100-year long-term outlook, and at end of the day, Michael made his mind up on bitcoin being the right option to go with.

The main reason for this was due to outside factors such as taxes and fees which had a big impact on other assets that we are contending to be Microstrategy’s store of value. Because bitcoin is still evolving and will get stronger and harder over time, Michael came to the conclusion that bitcoin is a “hive of cybernetic hornets protected by a wall of encrypted energy.”

But why bitcoin?

Interestingly, the conversation went on to Ethereum but Michael explained as to why it didn’t win the position over bitcoin saying that it didn’t compare as they are “still chasing after functionality“.

“There are centralized competitors to it and they’re [Ethereum] not done with the functional architecture yet.”

For more news on this and other crypto updates, keep it with CryptoDaily!

© 2020 CryptoDaily All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

You can share this post!

Advertisement