Michael Saylor, the CEO of MicroStrategy, has expressed his unwavering commitment to holding onto Bitcoin, even as the company’s holdings have surged to nearly $4 billion in unrealized profits.
In an interview with Bloomberg on February 20th, Saylor stated, “I’m going to be buying the top forever. Bitcoin is the exit strategy.” When questioned about whether his company would sell its stash of 190,000 BTC, valued at approximately $9.88 billion, Saylor firmly stated that there are no plans to sell.
Saylor provided a bullish case for Bitcoin, asserting that it is “technically superior” to gold, the S&P 500, and real estate, despite these asset classes having a significantly larger market capitalization than Bitcoin’s $1 trillion. He believes that capital will continue to flow from these asset classes into Bitcoin.
MicroStrategy, a business intelligence software firm, made headlines in 2020 as the first publicly traded company to invest in Bitcoin. As of the fourth quarter of 2023, the company held 190,000 BTC, acquired at an average cost of $31,224 each, amounting to a total investment of $5.93 billion.
According to data from HODL15Capital, US-based spot Bitcoin exchange-traded funds (ETFs), excluding the Grayscale Bitcoin Trust (GBTC), currently hold an estimated 270,000 BTC as of February 16th. Saylor noted that the demand for Bitcoin, driven by the growing interest in ETF products, has far outpaced the supply from miners, sometimes exceeding it by up to ten times.
Despite concerns that the rise of ETFs may impede MicroStrategy’s ability to purchase Bitcoin, Saylor dismissed these worries, explaining that the company employs a leveraged operating strategy for investing in the digital asset. He sees the spot ETFs as a gateway for institutional capital to enter the Bitcoin ecosystem, facilitating the digital transformation of capital and leading to hundreds of millions of dollars flowing from the traditional analog economy into the digital economy.
Saylor emphasized that this trend is beneficial for the entire industry, stating, “This is a rising tide. It’s going to lift all boats.”
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