MicroStrategy Chief Executive Officer Michael Saylor has reiterated the company’s unwavering commitment to bitcoin, advocating the cryptocurrency as an advantageous long-term investment compared to traditional assets. In a recent interview, Saylor discussed the company’s strategic focus on acquiring and holding bitcoin, highlighting its performance against traditional asset classes.
Since the fall of 2020, MicroStrategy has significantly increased its bitcoin holdings, growing from an initial purchase of 17,732 BTC to a substantial 158,400 BTC as of November 2023. This accumulation represents an investment of nearly $4.7 billion. The aggressive acquisition strategy has paid off; between August 10, 2020 and October 31, 2023, the value of bitcoin has risen 192%, outpacing the growth of stocks, gold, and bonds.
Saylor addresses concerns about bitcoin’s volatility and its classification as a digital currency by defining it as a “digital asset. He posits that bitcoin will eventually replace currency derivatives and weaker assets. His confidence in bitcoin is also rooted in its potential as a hedge against economic uncertainty.
Despite dumping 704 BTC in December 2022, MicroStrategy’s remaining bitcoin portfolio has generated significant unrealized gains. With the price of bitcoin at $37,000, the company’s gains are estimated to exceed $1 billion. At a recent conference in Australia, Saylor predicted that demand for bitcoin could increase tenfold in the coming year.
