MicroStrategy CEO Encourages Long-Term HODLing of Bitcoin
MicroStrategy CEO Michael Saylor, whose company holds a massive 205,000 Bitcoin (BTC), recently advised people to buy and hold their coins for 100 years. In an interview with CNBC, Saylor compared Bitcoin to digital property, describing it as a billion-dollar building in cyberspace. He emphasized the importance of viewing Bitcoin as a long-term investment and capital preservation tool rather than a currency or medium of exchange.
MicroStrategy’s Latest Bitcoin Purchase
Saylor’s recommendation came shortly after MicroStrategy announced another significant Bitcoin purchase. The company acquired $800 million worth of BTC at an average price of $68,377 per coin. This purchase was funded using funds from a $700 million convertible note offering that carries a low interest rate of 0.625% and is due for repayment in 2030. With this latest acquisition, MicroStrategy has become the largest corporate holder of BTC and now possesses nearly 1% of the total Bitcoin supply.
Bitcoin as Digital Property
Saylor believes that referring to Bitcoin as “digital currency” is misleading and prefers to consider it as digital property. He argues that Bitcoin’s primary use case is capital preservation for individuals worldwide. Saylor compares owning Bitcoin to owning valuable real estate, highlighting its potential as a store of value rather than a medium of exchange. He asserts that Bitcoin’s total addressable market as a store of value is estimated at $100 trillion, significantly surpassing its market as a desirable medium of exchange, which currently stands at $1 trillion.
Bitcoin vs. Gold
Saylor predicts that Bitcoin will outperform gold in the long run. Despite gold’s larger market cap compared to Bitcoin, Saylor argues that Bitcoin’s monetary properties are superior. He suggests that Bitcoin is competing with traditional risk assets and alternative retirement income sources like real estate investments for middle-class individuals. Additionally, Saylor highlights the growing popularity of Bitcoin spot ETFs, which have already reached half the size of all gold ETFs just two months after their launch in the United States.
Bitcoin’s Use Case as Property
Saylor believes that Bitcoin’s use case as property is less controversial and problematic with regulators compared to its use as a medium of exchange. Many critics of Bitcoin, including Elizabeth Warren, Jamie Dimon, and Gary Gensler, have expressed concerns about money laundering associated with Bitcoin transactions. Regulatory focus in the crypto industry often revolves around stablecoins, exchanges, and payment facilitators. By emphasizing Bitcoin’s role as digital property, Saylor aims to shift the narrative away from its potential use in illicit activities.
Hot Take: Michael Saylor Advocates Long-Term Bitcoin Ownership
MicroStrategy CEO Michael Saylor encourages individuals to adopt a long-term approach to Bitcoin ownership and view it as digital property for capital preservation. Despite Bitcoin’s classification as a cryptocurrency, Saylor argues that it should not be considered a currency or medium of exchange. Instead, he sees it as a valuable asset that can compete with traditional risk assets and alternative retirement income sources. Saylor believes that Bitcoin will surpass gold in terms of value and market cap, and he continues to acquire more BTC for MicroStrategy’s holdings.
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