The MicroStrategy CEO, Michael Saylor, described the role of cryptocurrencies in the future digital world and explained the company’s business strategy on CNBC.
MicroStrategy keeps backing up the truck on bitcoin, even issuing the world’s first «bitcoin bond.» @MicroStrategy CEO @michael_saylor breaks down his strategy. $MSTR pic.twitter.com/ftLsqPEtPe
— CNBC’s Fast Money (@CNBCFastMoney) June 15, 2021
In response to the question of why the business analytics software developer continues to buy bitcoin, he noted that it has become one of the company’s strategies. He called the leading cryptocurrency “digital gold in a large technology network.”
“MicroStrategy is the first company to conduct a Dutch auction or to buy back shares to acquire bitcoin. We were the first to offer convertible debt for acquiring cryptocurrency. Last week we became the first firm, to propose a senior secured debt for this purpose,” said Saylor.
According to him, buying bitcoin increased MicroStrategy’s brand strength by a hundredfold; the previous quarter was the best for the core business in the last decade — software sales rose by 10%.
Even if the company’s shares are perceived as an analogue to an ETF based on digital gold, Saylor argues that the firm’s stock has undeniable advantages. First, MicroStrategy can translate cash flow from software sales into cryptocurrency. Second, it has the ability to raise debt financing.
Regarding bitcoin maximalism and possible diversification of investments into virtual currencies, Saylor stated:
“Bitcoin is the largest and most dominant network of digital property. Think of it as huge blocks in cyberspace’s Manhattan. Then you have digital currencies such as Tether and stablecoins. They will be akin to CBDC dollars. You also have digital applications, such as Ethereum.”
He added that “Ethereum aims to dematerialize JPMorgan’s buildings, banking institutions and all exchanges.”
“All of these things have a place if you understand them correctly,” concluded Saylor.
However, he suggested that in the near term MicroStrategy will not take steps to buy Ethereum or any other crypto assets.
According to Bitcoin Treasuries the firm owns 92,079 BTC, which at the time of writing is valued at nearly $3.7 billion.
The company announced plans for additional share issuance of up to $1 billion. The funds will be used, among other things, to buy bitcoin.
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