MicroStrategy is Only HODLing Bitcoin, Says the CEO
US-based software developer MicroStrategy has adopted its strategy to heavily invest in bitcoin (BTC) in a bid to survive in a tech market dominated by significantly bigger competitors, according to Michael Saylor, the company’s CEO. He also confirmed his holder stance, declaring that his firm was “only acquiring and holding bitcoin”.
“MicroStrategy competes against Microsoft. We compete against companies a hundred times big as us," Saylor told Bloomberg in an interview. He said that in 2020 he saw digital transformation as the winning strategy. "If you have the dominant network, the losing strategy is to continue to work, to work harder and exponentially harder for a currency growing exponentially weaker,” he said.
According to the CEO, for MicroStrategy, it was either adopting the bitcoin strategy, or sell the company -- and they decided to pursue bitcoin.
Last December, the software firm announced they have spent a further USD 94m on BTC to hold on its balance sheet, bringing MicroStrategy’s total holding to a total of BTC 124,391 (USD 5.25bn).
Saylor said he had “a sense of the consequences" if they did nothing because he had seen the demise of some 99% of MicroStrategy’s competitors.
Asked whether he ever felt anxious about his company investing a major share of its funds into the cryptocurrency, Saylor declined, and said that he considered bitcoin an efficient hedge against inflation, stating:
“I don’t really think we could do anything better to position our company in an inflationary environment than to convert our balance sheet to bitcoin, because we basically built a balance sheet on a non-sovereign store of value that’s not a currency derivative."
Saylor noted that a couple of years ago, the company was "sitting on a bunch of cash" that was losing about 10% of its purchasing power a year. Once the COVID-19 pandemic arrived and the US Federal Reserve "took a more accommodative monetary policy," that cash started losing some 25% of its purchasing power, he said.
“My anxiety was maximized around April, May of 2020 when we had a K-shaped recovery and I realized that cash is trash,” the CEO concluded.
At 11:28 UTC, BTC is trading at USD 42,143. It's up 0.5% in a day and down 4% in a week.
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