Feeling down that bitcoin prices are well off their all-time highs? Don’t be, says bitcoin bull and MicroStrategy CEO Michael Saylor.
“My time horizon is a decade or more,” Saylor said on Yahoo Finance Live.
And Saylor is putting his money where his mouth is on bitcoin.
MicroStrategy disclosed this week it purchased 660 bitcoin for about $25 million between Dec. 30, 2021 and Jan. 31, 2022. The average price per coin tallied $37,865.
The company now holds 125,051 bitcoins valued at about $4.8 billion, reflecting Saylor’s focus on diversifying the software maker into a promising technology.
Adds Saylor, “People buy bitcoin because they want to buy an asset they understand that might have value in 100 years. The truth is there is no security trading on the Nasdaq of the New York Stock Exchange right now that you can understand 100 years from now.”
Despite the promise of bitcoin, the benchmark crypto has been swept up into the broader risk-off environment that has gripped the tech space this year.
Bitcoin prices hit a record high on Nov. 9 of $69,000, but have since dropped 41% to $40,000. MicroStrategy was not spared from the bitcoin sell-off.
The company was forced to book a $146.6 million digital asset impairment charge in the fourth quarter owing to the decline in value of its bitcoin holdings.
“Clearly it would be better if there were fair value accounting for publicly traded companies. If we ever see a transition from indefinite intangible to fair value accounting that would be a catalyst for more corporate action of bitcoin,” Saylor said.
Brian Sozzi is an editor-at-large and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.
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Source: https://finance.yahoo.com/news/bitcoin-is-a-100-year-investment-micro-strategy-ceo-181025685.html