Michael Saylor Doubles Down On Bitcoin Buys, Could Borrow Against MicroStrategy’s Huge Stash To Buy Even More BTC

468
$2.2 Trillion Asset Manager Buys Stake In MicroStrategy, Gains Indirect Exposure To Bitcoin
Advertisement
   
  • Michael Saylor’s MicroStrategy continues to purchase more BTC.
  • He believes the company can borrow against its holdings if it takes a more aggressive stance.

Michael Saylor’s MicroStrategy has continued to purchase more Bitcoin, as the CEO announced the company’s latest purchase at the beginning of the month. Saylor also disclosed a day ago that to purchase more BTC, the company had the option of borrowing against its pledged assets.

Financing Options

MicroStrategy has been stacking up on BTC for over a year, with the strategy of buying the dips as part of its mantra. The company’s CEO has revealed that they have no plans of stopping their streak, purchasing an additional 660 BTC at the beginning of the month, worth about $25 million to bring their tally to over 125,000 BTC worth a little over $5 billion.

However, sizable the purchase, it represented the company’s smallest BTC purchase since May of 2021. While some wonder if this is an indication of the company slowing down its purchases, Saylor in a recent interview with Bloomberg’s Emily Chang explained that at the moment, the company was making BTC purchases from free cash flow and is likely to continue to do so. He also noted that a more aggressive approach would see them consider options like borrowing against their holdings.

“If we are going to be more aggressive about buying BTC, then we will look at various financing options. Probably the most compelling and interesting options is to generate yield off of the 110,000 BTC that is currently on pledge or to borrow against that 110,000 BTC and then reinvest that into more BTC,” he said emphatically.

Saylor clarified that the company was yet to make a decision on the matter. He noted that the company would consider their risks of exposure in finalizing such a decision. The Bitcoin evangelist said, “we haven’t made any decisions on that yet, we’ll have to make sure that anything we do is creative and meets our risk parameters.”

Advertisement
   

2021 was a record year for MicroStrategy. The company’s chief executive explained that the company had seen growth over 39% year-on-year boost in their cloud subscription business, as well as a 6% top-line boost. He said that the company generated more free cash flow which they invested back in Bitcoin.

MicroStrategy A Bitcoin Investment Option

During the interview, Saylor also made a case for gaining exposure to Bitcoin through MicroStrategy stocks. The company’s huge exposure to the asset has made its shares tied to the asset class. He also highlights the fact that the company does not expose investors to mining risk.

“Looking for a leveraged BTC play with spot exposure that has a positive yield, MicroStrategy is the only game in town,” Saylor stated.

MicroStrategy’s chief remains long-term bullish on the digital asset and has taken to various platforms to advocate for it. It is the executive’s belief that the asset would one day be worth over $6 million.