Michael Saylor Explains Why MicroStrategy Adopted Its ‘Bitcoin Strategy’
Highlights
- Michael Saylor attributes MicroStrategy’s Bitcoin Strategy to BTC’s capped supply and high volatility.
- He emphasized Bitcoin’s superior performance compared to the S&P index and commodities like gold.
- Saylor discussed Microsoft’s upcoming shareholder vote on adding Bitcoin to its balance sheet.
In a recent interview, MicroStrategy co-founder Michael Saylor shed light on the company’s decision to embrace a ‘Bitcoin Strategy’ since August 2020. He also touched on Microsoft’s upcoming shareholder vote regarding Bitcoin adoption.
The Rationale Behind MicroStrategy’s Bitcoin Strategy
During a CNBC interview, Saylor explained that MicroStrategy chose Bitcoin due to its capped supply and significant volatility. He highlighted that Bitcoin’s volatility has allowed it to outperform traditional assets like gold and the S&P index, making it an attractive option for long-term growth.
Saylor described Bitcoin as a unique commodity, being the only one with an “absolutely capped” supply. This scarcity, he believes, will drive Bitcoin’s value higher over time. Additionally, he noted the regulatory advantage Bitcoin holds, allowing investors to allocate 100% of their liquid assets to it, unlike traditional securities.
Bitcoin’s Performance and MicroStrategy’s Investments
MicroStrategy recently bolstered its Bitcoin holdings, acquiring 15,400 BTC for $1.5 billion. Over the past four weeks, the company has spent more than $11 billion on Bitcoin.
Despite Bitcoin’s volatility, Saylor expressed confidence in its long-term trajectory, predicting a rally to $180,000 before settling at $140,000. He also pointed out that both he and MicroStrategy have weathered previous bear markets, making them well-prepared for future fluctuations.
Microsoft’s Upcoming Bitcoin Vote
Microsoft shareholders are set to vote on December 10 on whether to adopt Bitcoin on the company’s balance sheet. Saylor advocated for this move, suggesting it could add $1 trillion to Microsoft’s market cap and $150 to its share price. He also proposed that Microsoft could further enhance its enterprise value by replacing dividends and share buybacks with Bitcoin investments.
Broader Implications
Saylor’s stance on Bitcoin continues to resonate across the financial sector, earning praise from notable figures like author Robert Kiyosaki. As MicroStrategy deepens its commitment to Bitcoin, its strategy highlights the growing role of cryptocurrencies in corporate finance and long-term investment planning.
