Bitcoin Hodler Saylor says MicroStrategy will never sell stash

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(Bloomberg) — Even after Bitcoin’s recent 40% plunge, Michael Saylor says he will never back down from MicroStrategy Inc.’s multi-billion bet on the world’s largest cryptocurrency.

The enterprise software company’s growing Bitcoin stack has effectively made its stock a proxy for the digital asset. Still, its founder and CEO remains optimistic when asked if he’s tempted to sell in the face of what could be a prolonged bear market.

“Never. No. We are not sellers,” the 56-year-old told Emily Chang on Bloomberg Studio 1.0, heeding the popular mantra hodl, or hold on for life. and holding bitcoin right is our strategy.

Saylor turned off the lights in the summer of 2020 when the company – based in Tysons Corner, Va. – first announced its cash management plan centered around buying Bitcoin. Shares of the company gained more than 900% at one point. But his aggressive stance in continuing to add to his roughly $5 billion Bitcoin stockpile — tapping equity and debt-linked markets to fund the habit — has shown diminishing rewards of late.

MicroStrategy shares underperformed Bitcoin on its sell-off as risk appetite wanes. Additionally, the average reported price for each Bitcoin purchase since late February has been above current trading levels. However, the company’s total coffers — about 124,391 Bitcoin through the end of December, according to filings — remain in the dark due to early acquisitions.

Saylor said Bitcoin’s plunge from nearly $69,000 in November to below $40,000 this month doesn’t make him nervous about his holdings. In fact, they are a source of “great comfort” given rising inflation, he said.

“The best defense against inflation is a bitcoin standard, so I don’t really think we can do better to position our business in an inflationary environment than converting our balance sheet to bitcoin,” he said.

Saylor was motivated to adopt a bitcoin strategy as an alternative to stock buybacks and acquisitions in the face of slowing cash flow growth relative to the US money supply. The idea turned him into a crypto celebrity overnight with the likes of Elon Musk following suit and adding Bitcoin to Tesla Inc’s balance sheet. Yet fund managers continue to debate the merits of the more largest digital asset in the world as inflation protection due to lack of historical data.

“I had an idea of ​​the consequences if we did nothing, because I had seen the disappearance of 99% of my competitors, and I could see where we were going if we stuck to the status quo,” he said. declared. “We should either adopt a bitcoin strategy or sell the business. And we chose to sue Bitcoin.

The market value of MicroStrategy’s parts stash already exceeds the company’s market value. Still, Saylor remains committed to buying more coins as the company generates cash, and he sees more big Wall Street Whigs joining in at current prices.

“I feel like it’s consolidating at this level,” said Saylor, someone who touted Bitcoin as a buy from $11,000 to $59,000. “It’s a great entry point for institutional investors.”

©2022 Bloomberg LP

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