MicroStrategy CEO Michael Saylor said during a video conference that his company will continue to buy and hold bitcoin, a digital property he considers to be “the most attractive technical opportunity of the decade.”
MicroStrategy CEO Michael Saylor said during a video conference that his company will continue to buy and hold bitcoin, a digital property he considers to be “a dependable store of value and an attractive investment asset with more long-term appreciation potential than holding cash.”
Saylor made the remarks during a conversation with Anthony Pompliano, co-founder and partner at Morgan Creek Digital. The conversation was focused on how institutional investors can get involved in the cryptocurrency space.
During the conversation, Saylor explained that MicroStrategy’s decision to invest in bitcoin was driven by a desire to find an alternative to holding cash.
The Virginia-based software company has become known as one of the strongest supporters of bitcoin, in part because of the amount of assets it owns.
Saylor said the company’s plan is to continue buying and holding bitcoin, and it plans to focus on educating companies, institutional investors, regulators and the general public about the benefits of digital ownership.
“We looked at our balance sheet and we said, ‘Hey, we’ve got $250 million in cash and short-term investments. They’re earning a quarter of 1%.’ And we said, ‘Is there some other asset that we could hold that would be more valuable to us?'”
Saylor said that after doing research, the company decided that bitcoin was the best alternative.
“What we found was bitcoin met all of our requirements,” he said. “It’s durable, it’s portable, it’s divisible, it’s fungible, it’s scarce, it’s verifiable, it’s recognizable all around the world.”
MicroStrategy has invested a total of $425 million in bitcoin and currently holds more than 70,000 bitcoins. The company has also begun accepting bitcoin as payment for its products.
“There will never be more than 21 million bitcoins, and we feel there is a land strike now to acquire as much as you can,” Saylor said.
Speaking to Bloomberg, Saylor said his company is planning to keep Bitcoin for a long time, with a 10-year vision based on the fact that it predicts billions of people will understand the benefits of the currency; they are patiently working to get there before billions of users do.
Saylor, who has been stubbornly optimistic about Bitcoin even amid the bear market, said Microstrategy predicts “Bitcoin on the balance sheets of cities, states, governments, companies, small investors, large investors …” adding “ultimately, we think Bitcoin will be the core for big tech innovation at Apple, Amazon and Facebook.”
Big tech companies can generate $1 trillion in value just by plugging in bitcoin, Saylor said.
Companies like Apple, Google, Facebook and Amazon can implement bitcoin directly into their mobile apps, he added, noting that Square and PayPal have already done this successfully.
“By connecting this open, digitally owned protocol into every company, every product, every service and every government and every agency in the world, you’re going to make them better,” he said. “You buy bitcoin so that when Apple, Amazon, Facebook and Google embed bitcoin in your product, you will be the beneficiary because you can’t buy Apple, Amazon, Facebook and Google.”
Further explaining, Saylor said that although the stock market closes on weekends, the Bitcoin network never goes offline. This feature is already yielding benefits for platforms like Square, PayPal and Robinhood.