Michael Saylor owns $3.3 billion BTC, but that’s not quite enough for him. Totally in love with Bitcoin, he wants even more of it, ignoring the cries of alarm that several financial market analysts have made.
Saylor declared yesterday that the corporate strategy of MicroStrategy is to acquire more Bitcoin and that they will pursue all legal ways of buying as much as possible: “We’ve been pretty clear that we’ll consider equity and debt financings … It makes sense to buy as much of that asset class as we can.”
MicroStrategy now owns 90,531 bitcoins for which it has spent around $2.2 billion. The most recent purchase that we know about was for around $1 billion at the average cost of $52,000.
Despite Bitcoin falling below $50,000, Saylor is not worried, as he believes that the rarity of Bitcoin, its decentralized design, and mainstream adoption all add up to creating a perfect investment for any firm that plans to preserve the value of its assets.
“If you want to preserve shareholder value, you have to hold scarce assets. Bitcoin is the most liquid, scarce, uncorrelated asset you can buy.” Saylor also believes the number of Bitcoin users will grow: “We are going to see a day when 7-8 billion people have a bar of digital gold on their phone, and they are using it to store their life savings.”
Saylor became known in the crypto world for his frantic purchases of Bitcoin and for his advocacy regarding it, as he sees it as the best investment of the digital era.
MicroStrategy has organized free courses that aimed to help other investors and corporations, but also average citizens, understand the concept of Bitcoin better, shattering any doubts or myths relating to the King of Crypto.
Isn’t It Risky?
But this Bitcoin craze has been described as being potentially dangerous for investors. MicroStrategy was recently downgraded from neutral to sell by the risk management analysts at Citi.
Experts believe that Saylor has now become overexposed to Bitcoin’s volatility, and it could damage the company as it becomes driven by external forces that aren’t in control of the company.
Investors continue to be interested in Bitcoin and, indeed, after MicroStrategy had announced its new investment, the price of the stocks went up, and now Saylor has become an important person in the crypto sphere as a result of his actions.
Many actually believe that the purchases made by MicroStrategy and Saylor’s advocacy have played a role in how the price of Bitcoin has grown across the previous several months.