MicroStrategy’s CEO, Michael Saylor, recently expressed in an interview with Bloomberg that the company’s commitment to purchasing Bitcoin will be ongoing, describing it as their “exit strategy.” Saylor emphasized Bitcoin’s superiority over traditional assets such as gold, the S&P 500, and real estate, despite their larger market capitalizations. Notably, MicroStrategy was the pioneering publicly traded company to invest in Bitcoin, commencing its accumulation of the cryptocurrency in 2020. Their latest acquisition occurred on February 6, when they purchased 850 Bitcoin valued at $37.2 million.
Saylor perceives a significant movement of capital from conventional asset classes to Bitcoin at a macro level, asserting that this trend will persist. He argues that Bitcoin’s technical superiority justifies this shift and contends that selling Bitcoin to invest in other assets would be counterproductive.
Moreover, Saylor points to a surge in demand for Bitcoin, driven in part by investor interest in ETF products approved by the SEC in January. He notes that the demand for spot Bitcoin ETFs exceeds the supply from miners, sometimes by a factor of ten. According to Saylor, these ETFs serve as a gateway for institutional capital to enter the Bitcoin market, facilitating the digital transformation of capital.
However, Saylor acknowledges the potential challenge MicroStrategy may face in acquiring more Bitcoin amidst increasing demand and a bullish market. In response, he mentions that the company employs a leveraged strategy in its investment operations to navigate these challenges effectively.
Currently, MicroStrategy holds 190,000 BTC, purchased at an average price of $31,200, amounting to a total investment of $5.93 billion.
