The dedication MicroStrategy’s CEO is putting into Bitcoin raises questions even in the crypto sphere. Imagine how people in the traditional financial world feel. Michael Saylor joined CNBC’s “Fast Money” talk show to discuss his controversial game plan. The hosts asked though questions and the CEO answered them with ease.
What follows is a play-by-play narration of the game.
Of course, Saylor started by defining the intangible asset, “The world is waking up to the fact that Bitcoin is digital property on an open monetary network. And that’s pretty profound because it’s going to spread to billions of people around the planet. It’s digital gold on a big tech network.”
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Some people wonder if MicroStrategy abandoned its software business. If the company is now it’s some kind of Bitcoin ETF. According to the CEO, they have two strategies and one of those is to buy Bitcoin. “MicroStrategy is the first company to do a dutch auction or share repurchase to buy Bitcoin. We’re the first company to do a convertible debt offering to buy Bitcoin. Last week, we became the first company to do a senior secured debt offering to buy Bitcoin.”
NewsBTC already covered their latest play, and Saylor clarified that they will use the new funds, “either to buy Bitcoin, or to retire debt, or for general corporate purposes.” MicroStrategy wants to have all of its options open.
What Do MicroStrategy’s Share Holders Think?
When asked about his investor’s opinions on his obsession with Bitcoin, Saylor once again clarified the situation. Before this new chapter, MicroStrategy’s stock was trading at about $120 a share. They were a profitable company, but cash was a liability on their balance sheet. They shapeshifted, rotated their shareholders base, “and transformed ourselves into a company that’s able to sell enterprise software and to aquire and hold Bitcoin.”
As for the results of this move, he estimates that the power of their brand increased by a factor of 100. The last quarter was the best that the software side of the company’s had in the last 10 years. The core business is up 10%. Employees and shareholders are happy.
What Does Michael Saylor Think About Inflation?
“Over the past 12 months we’ve all been waiting for inflation” According to Saylor, investors say that Bitcoin is up 330% and gold is up 7% in that period. Bitcoin is outperforming gold by a factor of 50. Early Bitcoin believes like Paul Tudor Jones are doubling or tripling their allocation, “I’m surprised they’re not increasing their allocation by a factor of ten, because Bitcoin is fifty times better.”
Is Michael Saylor a Bitcoin Maximalist?
When asked about Bitcoin Maximalism and diversification, Saylor gave them a masterclass in crypto assets:
“Bitcoin is the highest and most dominant digital property network. Think of it like giant blocks in cyber-Manhattan. Then you have digital currency, that’s like Tether, and stablecoins, they want to be money markets in cyberspace. They’ll be like the CBDC Dollars. Then you have digital applications, like Ethereum. Ethereum wants to dematerialize the JP Morgan buildings, and the banking stablishments, and all of the exchanges. There’s a place for all of these things properly understood.”
Even though there’s a place for every asset, “Bitcoin is made to last forever. High integrity. Very durable.” And that’s a quality you want if you’re building over it.
MicroStrategy price chart on Cboe BZX | Source: MSTR on TradingView.com
Why buy a share of Microstrategy and just buy not Bitcoin?
Did anyone notice that MicroStrategy’s stock is now following Bitcoin’s rhythm on the charts? According to Saylor, his company offers two advantages. One, Microstrategy has the ability to sweep its software cash flow into Bitcoin. Two, they have the ability to raise debt financing. They can borrow a billion Dollars with zero percent interest. Your ETF will not be able to do that.
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So yeah, he compared his stock to an ETF because they’re roughly in the same category. Some investors and funds just can’t buy Bitcoin. They’re able to buy MSTR and the highly anticipated Bitcoin ETF, though.
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