Billions of people will hold Bitcoin on their mobile phones soon, said MicroStrategy’ Michael Saylor
MicroStrategy shared its second-quarter financial results for 2021, revealing impairment losses of $689.6 million from its Bitcoin holdings. But, the company CEO and Bitcoin evangelist Michael Saylor continues to remain ultra-bullish on the future of BTC.
Michael Saylor defends the massive $2.2 billion Bitcoin debt, still bullish
The Fortune 500 company holds $2.051 billion worth of BTC bought at an average price of $19,159 till June 30, 2021. The losses are mainly because the price at which MicroStrategy bought BTC in the second quarter of 2021 was higher than the current price.
Regardless of the losses incurred because of BTC holding, Saylor stated that the company intends to continue to buy Bitcoin as a digital asset. He shared that the latest capital gains of 13% revenue in the software business will expand digital holdings and dedicated the quarterly success to the broad adoption of the innovative MicroStrategy platform.
“We continue to be pleased by the results of the implementation of our digital asset strategy. Our latest capital raise allowed us to expand our digital holdings, which now exceed 105,000 BTC. In the future, we intend to continue to deploy additional capital into our digital asset strategy,” said Saylor.
— Squawk on the Street (@SquawkStreet) July 30, 2021
Speaking in an interview with CNBC’s Squawk Box, Saylor noted that buying Bitcoin now is similar to buying it in the early days.
Strongly defends massive debt of over $2 billion in Bitcoin, the CEO said:
“We’ve got $2.2 billion of debt, and we pay about 1.5% interest, and we have a very long time horizon. Our point of view is a leveraged, Bitcoin-long company is a good thing for our shareholders.”
MicroStrategy has been aggressively raising debt to buy the largest cryptocurrency by converting its security notes. But received a lot of flak from industry players for pouring such large sums of money into a highly volatile asset class.
“If you borrow billions of dollars at 1% interest and invest it in the next Big Tech digital network that you thought was going to be the dominant Amazon or Google or Facebook of money, why wouldn’t you?. I mean, if I could borrow $1 billion and buy Facebook a decade ago for 1% interest, I think I would’ve done quite well,” Saylor responded to all the criticism and the current interest.
Saylor says that they hold their BTC for the long term and won’t sell it anytime soon. He added that they have a 10-year perspective on their BTC investments:
“Our strategy is long Bitcoin, long term, leveraged intelligently. It is only a matter of time before billions of people plug their mobile phones into BTC, and we want to be there first. The future of big tech is digital property.”
Ultimately, Michael Saylor is confident that billions of people will hold digital assets (Bitcoin) on their mobile phones one day. So they want to be first in the game.
Despite incurring losses on its BTC holdings, MicroStrategy is leading the Bitcoin adoption race. The software giant joined the BTC community last year in August and has not stopped buying the dip and multiplying its BTC portfolio since.
Peter Schiff slams Saylor for going “completely mad”
Schiff has slammed Michael Saylor in his tweet, saying that he will hardly be able to take “his Bitcoin to the grave”.
Traditional wealth preservation strategies leave a lot to be desired. Sell your #Gold and don’t bother building a Pyramid. It is time to try something new. You can take #Bitcoin anywhere in time & space. It is the future of property and property rights.https://t.co/5SOwDl4Dl6
— Michael Saylor (@michael_saylor) July 31, 2021
In response, Saylor posted an article about gold being stolen from the tombs of Egyptian pharaohs, perhaps hinting that you cannot store gold after death either.
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