MicroStrategy CEO: Inflow of funds from liquid assets into Bitcoin is not a bubble

Money is flowing into Bitcoin from liquid assets, not a rally or a bubble, but a reaction to rising risks of devaluation, says Michael Saylor, head of MicroStrategy, a company that has invested more than $1bn in cryptocurrency.

Money is flowing out of conventional assets into #Bitcoin due to the escalating risks of global currency devaluation, technology disruption, social dislocation & political uncertainty. This is not a “rally” or “bubble” – it’s a chain reaction spreading like a fire in cyberspace.

— Michael Saylor (@michael_saylor) December 22, 2020

“Money is flowing out of financial assets into Bitcoin due to rising risks of devaluation of global currency, technological disruptions, social distortions and political uncertainty. This is not a ‘rally’ or ‘bubble’ — it’s a chain reaction spreading like a fire in cyberspace,” said Saylor.

In August, Nasdaq-listed analytics software provider MicroStrategy bought 21,454 BTC. At the time of the deal the cryptocurrency was worth around $250m. In September, following a new policy of treasury management, the firm additionally acquired 16,796 BTC for $175m.

In early December MicroStrategy invested another $50m in Bitcoin, increasing its crypto assets by 2,574 BTC.

Then the company bought 29,646 BTC for $650m, financed through a debt securities offering.

Saylor had previously announced the use of proceeds from the sale of convertible senior notes. For this, he was criticized by Bitcoin skeptic and gold bug Peter Schiff.

According to Bitcoin Treasuries, at the time of writing MicroStrategy’s unrealized gains in Bitcoin exceed $520m.

Earlier Schiff said that the speculative bubble around the first cryptocurrency surpassed the hype in dot-com and mortgage markets.

Founder of Rosenberg Research David Rosenberg, amid Bitcoin reaching an all-time high, also called the asset “a massive bubble.”

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