MicroStrategy’s CEO’s commitment to Bitcoin also raises questions in the crypto space. Imagine how people feel in the traditional financial world. Michael Saylor joined the CNBC talk show “Fast Money” to discuss its controversial schedule. However, the hosts asked questions and the CEO answered them with ease.
What follows is a game-by-game narration of the game.
Of course, Saylor began by defining the intangible asset: “The world is awakening to the fact that Bitcoin is digital property on an open currency network. And that’s pretty profound because it’s going to spread to billions of people around the world. It’s digital gold in a large tech network. ”
Related reading | Saylor responds to ridicule that Bitcoin has become Crypto’s MySpace
Some people wonder if MicroStrategy has gone out of 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 them is to buy bitcoin. “MicroStrategy is the first company to conduct a Dutch auction or share buyback to buy Bitcoin. We are the first company to offer a convertible bond offering to buy Bitcoin. Last week we were the first company to conduct a Senior Secured Debt Offering to buy Bitcoin. ”
NewsBTC has already reported on their latest game, and Saylor made it clear that they will use the new funds “either to buy Bitcoin or reduce debt, or for general corporate purposes”. MicroStrategy wants all options open.
What do MicroStrategy shareholders think?
When asked what his investors think about his obsession with Bitcoin, Saylor clarified the situation again. Prior to this new chapter, MicroStrategy’s stock was trading at around $ 120 per share. They were a profitable company, but cash was a liability on their balance sheet. They changed shape, rotated their shareholder base, and turned us into a company that can sell enterprise software and buy and hold bitcoin.
As for the results of this move, he estimates that the power of their brand has increased by a factor of 100. The final quarter was the best the company’s software side had in the past 10 years. The core business has increased by 10%. Employees and shareholders are happy.
What does Michael Saylor think about inflation?
“For the past 12 months, we’ve all been waiting for inflation,” Saylor said investors say Bitcoin is up 330% and gold is up 7% over the period. Bitcoin outperforms gold by a factor of 50. Early Bitcoin, like Paul Tudor Jones, believes it will double or triple its allocation: “I’m surprised that they don’t increase 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 master class in crypto assets:
“Bitcoin is the highest and most dominant digital real estate network. Think of it as giant blocks in cyber Manhattan. Then you have digital currencies, which is like tether, and stablecoins, they want to be money markets in cyberspace. You will be like the CBDC dollars. Then you have digital applications like Ethereum. Ethereum aims to dematerialize the JP Morgan buildings, banking institutions and all exchanges. All of these things have their place if they are properly understood. ”
Although there is a place for every asset, “Bitcoin is made to last. High integrity. Very durable. ”And that’s a quality you want if you build on it.
MicroStrategy price chart on Cboe BZX | Source: MSTR on TradingView.com
Why buy a portion of MicroStrategy and not just buy Bitcoin?
Has anyone noticed that MicroStrategy stock is now following the rhythm of Bitcoin on the charts? According to Saylor, his company offers two advantages. First, Microstrategy has the ability to pour its software cash flow into Bitcoin. Second, they have the option of borrowing. You can borrow a billion dollars with no interest. Your ETF cannot do that.
Related reading | Can bears force Michael Saylor to sell his bitcoin? Analyst shared the bullish theory
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. However, you can buy MSTR and the highly anticipated Bitcoin ETF.
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