MicroStrategy was the first publicly traded company in the U.S. to integrate Bitcoin into its balance sheet. The software company uses BTC as a hedge against inflation and has benefited from more than the performance of the asset, as its CEO Michael Saylor recently claimed.
In an interview with CNBC’s Market Alert, the executive said that Bitcoin has “done wonders” for the MicroStrategy brand elevating it “by a factor of 100”. Saylor revealed that the software company has had one of its best quarters in 6 years with a 13% increase in revenues and surpassing the experts’ expectations in terms of diluted earnings per share or non-GAAP EPS.
Saylor said that Bitcoin has made its shareholders “billions of dollars” over a 1-year period and compares the cryptocurrency with real state property. He added that his company has been able to thrive on top of Bitcoin and their BTC strategy:
It’s better than real estate, it’s scarcer, not taxed the same way…You literally can take it w/you to the grave…It’s enormously appealing to people that are looking for economic security right now.
The CEO of MicroStrategy will stick to the plan that has worked out for the company, so far, taking on debt to buy BTC. Data from Bitcoin Treasuries indicates that MacroStrategy, the entity created by MicroStrategy to hold their BTC, has around $4 billion or 105,084 BTC.
The car manufacturer led by Elon Musk, Tesla, holds over 40,000 BTC or $1,6 billion, followed by the Jack Dorsey-led Square with 8,027 BTC or $220 million. In total, the public companies that have invested in Bitcoin hold over 7% of the cryptocurrency’s total supply.
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Saylor said that the company pays around 1.5% interest on a $2 billion debt with a “very long time” horizon of maturation. Much of the debt has been used to purchase more Bitcoin. In defense of this strategy, the executive said:
Our point of view is being a leverage Bitcoin long company is good for our shareholders. If you could borrow billions of dollars at 1% interest and invested in the next big tech digital network that you thoughted were going to be the dominant, Amazon, Google, or Facebook of money, why wouldn’t you?
In that sense, Saylor expects BTC to perform similarly to these big tech companies and yield extraordinary results in the next decade. He clarified that Bitcoin has an even bigger potential due to its characteristics.
Data shared by Saylor claims that over 114 million people around the globe own Bitcoin. Thus, making it the most “broadly” held financial asset in “the history of the world” with over 2 million joining the network every week.
That’s the fastest growing financial asset and its open to anybody 24/7, 365 (days) in any country on earth. It’s only a matter of time before billions of people have mobile phones plugged into Bitcoin, we just want to be there first. There is never gonna be more than 21 million of this things.
Expanding on how Bitcoin has helped boost the MicroStrategy brand by opening discussions with “every” CEO and CFO and increasing the morale of the company’s employees.
At the time of writing, BTC trades at $40,024 with a 1.8% and a 24.6% profit in the daily chart.