Michael Saylor Discusses Bitcoin’s Potential Over Gold on CNBC
On March 11, 2024, Michael Saylor, the Executive Chairman of MicroStrategy Inc. (NASDAQ: MSTR), appeared on CNBC’s “Squawk Box” to discuss the impressive trajectory of Bitcoin, its advantages over traditional gold, and the innovative investment strategies his company has employed to capitalize on Bitcoin’s potential.
Bitcoin: The Digital Gold
Saylor initiated the conversation with a strong statement on Bitcoin’s recent milestone, surpassing the $70,000 mark for the first time, emphasizing its position as at least the digital equivalent of gold, if not superior. He argued that Bitcoin shares all of gold’s beneficial attributes while lacking its drawbacks, such as the inability to be instantly transferred globally. Saylor predicted that Bitcoin would divert capital from traditional risk assets and ETFs, highlighting its incorporation into major funds like BlackRock’s Global Opportunities Fund, thereby structurally elevating its asset class status.
MicroStrategy’s Strategic Bitcoin Investment
MicroStrategy’s recent announcement of purchasing over $800 million in Bitcoin, increasing their holdings to approximately 200,000 Bitcoins, was a bold move that underscored Saylor’s confidence in Bitcoin’s value. He described his company as a more agile and potentially higher-performing investment vehicle compared to traditional ETFs, likening it to “Air Freight” for Bitcoin investments. Saylor elaborated on MicroStrategy’s use of intelligent leverage, through borrowing at incredibly low interest rates to invest in Bitcoin, enhancing shareholder value through increased Bitcoin exposure per share.
Bitcoin’s Unique Value Proposition
Saylor addressed the inherent value of Bitcoin beyond its current price, emphasizing its superiority over traditional investments like gold, equity, bonds, and real estate due to its digital nature, global accessibility, ethical foundation, and practical utility. He championed Bitcoin as the most ethical, widely recognized, and trusted investment asset globally, accessible and tradable 24/7, unlike conventional markets.
Responding to Volatility and Future Predictions
In response to inquiries about Bitcoin’s volatility and the psychological impact of price fluctuations, Saylor reassured viewers of his unwavering confidence in Bitcoin as an investment, even during its low points. He endorsed the asset’s fundamental attributes and its potential for transforming global financial transactions, from buying houses to cars, at any time, anywhere.
Earlier today, MicroStrategy announced its latest BTC purchase:
– MicroStrategy has acquired an additional 12,000 BTC for ~$821.7M using proceeds from convertible notes & excess cash for ~$68,477 per bitcoin.
– As of 3/10/24, MSTR holds 205,000 BTC acquired for ~$6.91B at an average price of $33,706 per bitcoin.
Hot Take: Embracing the Future of Bitcoin Investment
Bitcoin continues to gain traction as a digital asset with significant potential to rival traditional investment vehicles. Michael Saylor’s confidence in Bitcoin’s superiority over gold and other assets highlights the evolving landscape of investment strategies in the digital age. As global interest in cryptocurrency grows, innovative approaches like MicroStrategy’s strategic Bitcoin investments pave the way for a new era of financial opportunities. By embracing the unique value proposition of Bitcoin and leveraging its advantages, investors can capitalize on its potential for long-term growth and transformative impact on the financial market.
By
By
By
By
By