In an eye-opening interview with Bloomberg on February 21, 2024, Michael Saylor, the visionary founder of MicroStrategy, shared his unwavering strategy towards Bitcoin: continuous investment, no matter the price.
Holding approximately 190,000 BTC, Saylor's approach not only showcases his belief in Bitcoin's long-term value but also hints at the broader implications of physical Bitcoin ETFs on the market dynamics.
Dive into the insights from a man who sees Bitcoin as "the ultimate exit strategy and the strongest asset," and why he believes that the best investment strategy is to keep buying, indefinitely.
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MicroStrategy's Founder Has No Plans to Sell Bitcoin
Michael Saylor, the founder of MicroStrategy known for his continuous Bitcoin (BTC) purchases, revealed in an interview with Bloomberg published on February 21, 2024, that he has no plans to sell any of his Bitcoin holdings.
MicroStrategy, a U.S.-based business intelligence software company, is known for its regular, significant purchases of BTC and, as of the time of writing, holds approximately 190,000 BTC, equivalent to about 1.48 trillion JPY.
Should MicroStrategy decide to sell its Bitcoin holdings, it is anticipated that this could exert significant selling pressure on the Bitcoin market. However, Michael Saylor expressed his intention to continue purchasing Bitcoin for the long term.
The Impact of a Physical Bitcoin ETF
The interview also addressed the question of whether the advent of a physical Bitcoin ETF, which has intensified competition, has made it more difficult for MicroStrategy to purchase Bitcoin.
Saylor dismissed the idea, stating that "MicroStrategy has adopted a leveraged operating strategy for Bitcoin," and he evaluates the Bitcoin ETFs positively, noting that they have created a good cycle.
He mentioned that "physical Bitcoin ETFs have opened the door for institutional investors to participate in the Bitcoin ecosystem," and explained that "the demand for physical ETFs far exceeds the supply from miners, with daily demand sometimes reaching 8 to 10 times the available supply."
Bitcoin as the Ultimate Exit Strategy and Asset
When asked about plans to sell Bitcoin, Saylor responded by questioning the meaning of profiting from such a sale, affirming, "I intend to continue buying Bitcoin forever, even at high prices."
Indeed, MicroStrategy continued to purchase BTC during the price surge in 2021 and maintained its buying and holding strategy even after the BTC price crash in 2022.
Describing Bitcoin as "the ultimate exit strategy and the strongest asset," Michael Saylor shared his views on Bitcoin during the interview, highlighting its enduring value and strategic importance in his investment philosophy.
Bitcoin has emerged as a trillion-dollar asset class, joining the likes of Apple, Google, and Microsoft. The difference between bitcoin and the "amazing seven" is that bitcoin is an asset class. Bitcoin is not a company.
There is not enough room in the capital structure of these companies to hold $10 trillion or $100 trillion worth of capital. So bitcoin is competing with gold. Gold is 10 times more expensive. Currently it competes with the S&P index and competes with real estate. It is over $100 trillion in an asset class as a holding value.
So we believe capital will continue to flow out of those asset classes and into bitcoin. Because bitcoin is technically superior to those asset classes. And if that is the case, there is no reason to sell the winners and buy the losers.