According to Michael Saylor, CEO of MicroStrategy, his company will buy more bitcoin as it continues to go down in price. He’s confident that Microstrategy’s balance sheet does not now rely on currency derivatives and he is happy that it is built on a non-sovereign store of value.
In an interview last Friday on Bloomberg, Saylor said that two years ago his company was sitting on cash that was losing around 10% of its purchasing power a year, and that when Covid hit, the Fed’s intervention with printing probably made that cash lose 25% a year.
He feels that changing the company balance sheet to bitcoin has increased his company stock five times, while at the same time saving it from an unpleasant fate.
The Microstrategy boss is the longest serving CEO of a software company in history. He started the company in 1989 and has been there for 32 years to date. He said that he had learned “humility” in this time, and that he had seen 99% of his peers leave the business.
On being asked if he was “feeling the cold” in this possible crypto winter for bitcoin, Saylor replied, quoting Warren Buffet:
“If you wouldn’t hold it for ten years you shouldn’t hold it for ten minutes.”
Saylor went on to say that the winning strategy was to back the dominant network, and that the losing strategy was to work “exponentially harder, for a currency that was exponentially growing weaker”.
For the short term yearly outlook, Saylor thinks that bitcoin is consolidating and that now would be a great time for institutions to make their first investment.
For MicroStrategy, Saylor says that they have invented a Bitcoin Standard, and that as they generate cash, they sweep it into Bitcoin. He says that his company will continue to use debt to buy more. In addition, they are looking at future partnerships that would enable them to acquire even more.
On his view of which way the government and regulators would go on crypto Saylor replied:
“There’s a profound, shared appreciation that digital assets are the future of the financial industry, and the United States needs to lead, and I’ve been pretty impressed at the support in the Senate, in Congress, from the Administration, and from regulators all around the world for this entire crypto economy.”
He sees the banking sector enter into the stablecoin sector, helping to regulate them as currencies, while a lot of cryptocurrencies would be termed as securities and regulated as such.
Disclaimer: 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.