MicroStrategy’s Michael Saylor Defends the Massive $2.2 Billion Bitcoin (BTC) Debt

Published by

Published 31 Jul, 2021 | 03:05:24 AM UTC

MicroStrategy’s Michael Saylor Defends the Massive $2.2 Billion Bitcoin (BTC) Debt

On Thursday, July 29, business intelligence firm MicroStrategy revealed its second quarter results for 2021 declaring over $600 million with impairment losses with its bitcoin holdings. But company CEO and Bitcoin evangelist Michael Saylor continues to remain ultra-bullish on the future of Bitcoin.

Saylor noted that buying Bitcoin right now is similar to buying Bitcoin in its early-days, during an interview with CNBC’s Squawk Box. Strongly defending the massive debt of over $2 billion in Bitcoin, the CEO said:

“We’ve got $2.2 billion of debt and we pay about 1.5% interest, and we have a very long time horizon. Our point of view is being a leveraged, bitcoin-long company is a good thing for our shareholders.”

The company has been aggressively raising debt to buy Bitcoin by converting its security notes. However, it has received a lot of flak from industry players for pouring such large sums of money in a highly volatile asset class. Responding to all the criticism and the current interest, Saylor said:

“If you borrow billions of dollars at 1% interest and invest it in the next Big Tech digital network that you thought was going to be the dominant Amazon or [Alphabet’s]gugg Google or Facebook of money, why wouldn’t you?. I mean, if I could borrow $1 billion and buy Facebook a decade ago for 1% interest, I think I would’ve done quite well.”

$1.4 Billion Profits In Bitcoin On Paper

MicroStrategy has been aggressively buying Bitcoins over the last year year and holds more than 100K BTC on its balance sheet. The company has more than $4 billion worth of Bitcoins with $1.4 billion in profits on paper.

Speaking to Bloomberg TV, Saylor said that they are holding their Bitcoins for long-term and won’t sell anytime soon. He further added that they have a 10-year view with their Bitcoin investments. Saylor said:

“Our strategy is long #bitcoin, long term, leveraged intelligently. It is only a matter of time before billions of people plug their mobile phones into bitcoin and we want to be there first. The future of big tech is digital property”.

Saylor believes that one day billions of people will hold the digital property (Bitcoin) on their mobile phones. Thus, they wwant to be the first in the game.

Bhushan Akolkar

Bhushan is a seasoned crypto writer with over eight years of experience spanning more than 10,000 contributions across multiple platforms like CoinGape, CoinSpeaker, Bitcoinist, Crypto News Flash, and others. Being a Fintech enthusiast, he loves reporting across Crypto, Blockchain, DeFi, Global Macros with a keen understanding in financial markets.   He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills. Bhushan has a bachelors degree in electronics engineering, however, his interest in finance and economics drives him to crypto and blockchain.

Published by

Bhushan Akolkar

Published 31 Jul, 2021 | 03:05:24 AM

Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.

Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.