Michael Saylor Reveals Major Reason Behind MicroStrategy’s ‘Bitcoin Strategy’

In a recent interview, MicroStrategy's co-founder Michael Saylor discussed the primary reason why his company adopted the 'Bitcoin Strategy.'
By Boluwatife Adeyemi
Michael Saylor Reveals Major Reason Behind MicroStrategy's 'Bitcoin Strategy'

Highlights

  • Michael Saylor suggested that MicroStrategy adopted the Bitcoin Strategy because of its capped supply and volatility.
  • The company's co-founder noted how this volatility has caused BTC to outperform the S&P index and commodities like gold.
  • Saylor also discussed his Microsoft's upcoming shareholders' meeting on whether to adopt Bitcoin.

MicroStrategy co-founder Michael Saylor has revealed why his company has adopted a ‘Bitcoin Strategy’ since August 2020. The tech entrepreneur also discussed Microsoft’s upcoming shareholders’ meeting, where they will vote on whether to adopt Bitcoin on their balance sheet.

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Michael Saylor Reveals Reason For MicroStrategy’s ‘Bitcoin Strategy’

In a CNBC interview, Michael Saylor suggested that his company adopted the Bitcoin strategy because of BTC’s volatility and capped supply. While discussing how they profit from this strategy, Saylor highlighted how the flagship crypto has outperformed other commodities like gold and silver.

He stated that Bitcoin has a 60% volatility and ARR (annual recurring revenue), unlike these other commodities with low volatility that don’t even last that long. Saylor further remarked that BTC is the only commodity invented in the history of the human race that is “absolutely capped.”

In line with this, the MicroStrategy co-founder said that Bitcoin will continue to rise as it becomes more scarce. Michael Saylor also mentioned how BTC has outperformed the S&P index and is more volatile than these stocks.

The flagship crypto also has an edge over these stocks, with Saylor noting that investors can put 100% of their liquid assets in the crypto per SEC rules, something that public companies can’t do with securities.

Saylor’s remarks come just as MicroStrategy recently acquired 15,400 BTC for $1.5 billion. The software company has bought Bitcoin for four consecutive weeks now, spending over $11 billion in the process.

When asked if he wasn’t concerned that the volatility means that Bitcoin could experience significant moves to the downside, Saylor said that he thinks BTC will “surge through the roof” and then rally to as high as $180,000 before dropping to $140,000.

It is worth mentioning that Saylor and MicroStrategy lived through the 2021 bear market, so they are unlikely to be fazed by any retracement the flagship crypto might face.

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Thoughts On Microsoft’s Bitcoin Vote

Microsoft will vote on December 10 on whether to adopt Bitcoin on its balance sheet. Michael Saylor believes the company should not hesitate to embrace the flagship crypto. During the interview, he stated that Microsoft could add a trillion dollars to its market cap and $150 to its share price if it put all its existing cash into Bitcoin.

Saylor added that the company could add another $1 trillion and $150 to its share price if it converts its existing dividend into Bitcoin. The MicroStrategy co-founder believes the same will happen if Microsoft replaces their share buybacks with investing in BTC.

Michael Saylor also believes that investing in Bitcoin is an excellent way for Microsoft to de-risk and grow its enterprise value. Interestingly, Saylor recently gave a three-minute pitch to Microsoft shareholders on why they should adopt Bitcoin. Saylor has received praise from renowned author Robert Kiyosaki for his company’s Bitcoin Strategy.

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Boluwatife Adeyemi
Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across several niches. His speed and alacrity in covering breaking updates are second to none. He has a knack for simplifying the most technical concepts and making them easy for crypto newbies to understand. Boluwatife is also a lawyer, who holds a law degree from the University of Ibadan. He also holds a certification in Digital Marketing. Away from writing, he is an avid basketball lover, a traveler, and a part-time degen.
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