A strong advocate for Bitcoin, Michael Saylor, has restated his bullish stance on the cryptocurrency calling it an open-digital property network, an international trust network as well as the only asset his company, MicroStrategy, needs to have a diversified investment for the long term.
Speaking to Bloomberg TV, the CEO of the first publicly-traded company to have Bitcoin on its balance sheet stated that the company is leveraged long on Bitcoin, with a 10-year view based on the fact that they envision a time when billions of people will catch on to the benefits of the network; they are working patiently to get there before the billions of users do.
He also points out that MicroStrategy is unique in the way it has put together its leverage with debt. The company made around $1.4 billion in profit on paper as it has not sold or plan to sell its BTC holdings soon. The company acquired its Bitcoins with both operating income and debt of $2.2 billion at a blended interest rate of around 1.5% interest. Saylor, pitching to win potential investors over for the company, said “if you like Bitcoin, then you’d like the idea of owning $2.2 billion in Bitcoin if it is at 1.5% of interest.”
Saylor, who has been unwaveringly bullish for Bitcoin, even amid the bear market, stated that his company envisions “Bitcoin on the balance sheets of cities, states, governments, companies, small investors, big investors…” adding “ultimately, we think Bitcoin is going to be the core to big-tech innovation at Apple, Amazon, and Facebook.”
Explaining further Saylor said that while the equity market was closed on weekends, the Bitcoin network never goes offline twenty-four hours a day, 365 days a year. This feature is already yielding benefits for platforms such as Square, PayPal, and Robinhood.
In much the same way as he has given publicity to Bitcoin in the past, Saylor further said that Bitcoin will solve issues in big-tech and social media companies as the network being trustless would help companies improve user experience online by eliminating spam and improving cybersecurity.
To clear all doubts, MicroStrategy is not relenting in its Bitcoin stance as the CEO also revealed that in the future the company still had plans to purchase more Bitcoin. Though it was still uncertain how it would fund the purchase, the company’s shareholders will decide if the move will be financed by cash flow, debt, or equity when the market conditions are right.
MicroStrategy currently holds over 105,000 Bitcoins on its balance sheet. The company does not consider any other cryptocurrencies and has been instrumental in reassuring the public to hold on to their positions.