Michael Saylor suggested corporations adopt Bitcoin to preserve capital.
Michael Saylor is co-founder & former CEO of the Bitcoin bull firm Microstrategy. In 2020, Microstrategy firm decided to invest in Bitcoin. Following the company’s Bitcoin buy plan, the trade price for Microstrategy (MSTR) stock surged nearly 150% and later hit $700+ in late 2021 following the pump in the trade price of Bitcoin.
On 4 Nov 2023, Michael Saylor said that the biggest market cap crypto asset Bitcoin offers corporations an innovative way to preserve capital funds while simultaneously creating additional value for stakeholders by using the Bitcoin balance.
Saylor also explained that there is no expense for holding Bitcoin on the balance sheet, unlike other investment activities.
This statement by Saylor came amid the Bitcoin bull sentiments where the Bitcoin trade price is already 111% high year to date (YTD).
As per the Q3 2023 earning report, Microstrategy currently holds 158,400 Bitcoins, valued at $5.5 billion at the current trade price, on the company’s balance sheet.
In the last month, the company purchased an additional 155 Bitcoins for $5.3 million.
As per current trade price calculation, Microstrategy is in $900 million profit with bitcoin investment strategy and interestingly this Bitcoin investment profit is equal to the company’s last 7 years of revenue from the non-Bitcoin businesses.
In late 2022, Saylor stepped down from the CEO position and decided to give his full time only for Bitcoin-focused initiatives, so that company could generate some revenue by withholding Bitcoin.
At the time, Saylor said that the company may give Bitcoin to other companies at some interest or will develop some special kind of software for Bitcoin-focused new use cases.
Amid the Bitcoin ordinals (BRC-20) hype during the first quarter of this year, Saylor said that Microstrategy can use BRC-20 tech to develop a Bitcoin-focused app.
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