Despite the many losses his company has incurred due to bitcoin’s price swings, Michael Saylor of MicroStrategy says he remains a bitcoin fan and he’ll never doubt the asset’s abilities.
Michael Saylor Still Trusts Bitcoin
At the time of writing, bitcoin – the world’s largest and most popular cryptocurrency by market cap – has dropped to around $39,000 per unit. This may not seem bad on paper, but when one considers the fact that the asset was trading for just shy of $70,000 about six months ago, things aren’t looking so good, and Saylor has lost quite a bit for investing so much of his company’s money into the asset.
MicroStrategy is arguably one of bitcoin’s biggest institutional supporters. The software giant first began trading and buying bitcoin in August of 2020, a time when very few companies – especially ones as big as MicroStrategy – were taking such steps. The company purchased around $250 million in BTC and then added to this purchase just a few weeks later.
In September of that year, the currency incurred a brief bearish bout that saw the price of one BTC fall from $12K to around $10K. It’s easy to assume that in most cases, companies that had engaged in trades similar with MicroStrategy’s would decide to cut their losses short. They would likely sell their units of bitcoin and get out while they still could, but not MicroStrategy.
Instead, the company decided to weather the storm. Executives held firm and even bought additional units. This move proved correct in the end as later in October, PayPal – one of the world’s biggest digital payment firms – announced that users would soon be able to hold and trade digital currencies like BTC through its platform.
This caused the price of bitcoin to jump to about $13K which was huge at the time, and to be fair, the asset has only gotten larger since then. MicroStrategy has held onto its bitcoin and at the time of writing, owns just under $4 billion worth of the asset.
This is great news, except that at one time, the firm held roughly $5 billion. That means that over the past several months, MicroStrategy has lost more than $1 billion in BTC holdings. This isn’t deterring Saylor, however, who has sworn up and down that his company will continue to buy BTC for as long as the currency exists.
Taking The Love of BTC to a New Level
Phong Le – the chief financial officer of MicroStrategy – said in an interview:
To reiterate our strategy, we seek to acquire and hold bitcoin long term. We view our bitcoin holdings as long-term holdings and we do not currently plan to engage in sales of bitcoin… We raised $205 million as an interest-only loan for a term of three years, which is collateralized by bitcoin. The loan matures on March 23, 2025.
Source: https://www.livebitcoinnews.com/despite-losses-michael-saylor-remains-a-btc-fan/