Michael Saylor Explains Bitcoin is Classed as Property, Every Other Crypto is a Security
MicroStrategy CEO and avid Bitcoin advocate Michael Saylor says Bitcoin is the best property money can buy.
Saylor is not afraid of Bitcoin’s volatility. He says that positioning MicroStrategy as an asset-rich company by investing in Bitcoin, for the same reason you would invest in property, will allow for stock value to appreciate over time.
He likens the monetary inflation rate as the wind against the corporate boat’s sails. Rowing against it won’t get you forward, whereas investing in Bitcoin is a vehicle to outperform inflation and get ahead of poor interest rates effortlessly. It’s like sailing with the wind, instead of going against it.
Buying Bitcoin as “digital property” is an easy way to make money, Saylor says. Today, MicroStrategy holds US$5 billion worth of Bitcoin (124,000 BTC) and continues to buy the dip.
Bitcoin as a Store of Value
“Bitcoin is digital gold,” Saylor has been known to say. In the race against inflation and negative interest rates, he maintains Bitcoin is the best appreciating asset to invest in to grow profits and secure financial gains for company shareholders.
Saylor explains that the way he looked at investing for companies had to change because cash was no longer holding up its value over time; in fact it was going backwards, depreciating year on year due to money printing accelerating inflation rates faster than ever before.
For MicroStrategy, the first treasury investment in Bitcoin was purely a matter of keeping money on the balance sheet as a way of holding capital. “It was better to take a risk,” Saylor says, than do nothing.
It paid off. MicroStrategy’s stock rose to its all-time high, beating previous 10-year levels. Not only that, the convertible bond MicroStrategy sold was the best performing bond of any company sold last year. It was a “screaming home run”, says Saylor, who has become one of the world’s biggest champions of Bitcoin.
The MicroStrategy Backstory
MicroStrategy builds, sells, and markets enterprise business intelligence software. The company’s investment strategy is now focused on buying and holding Bitcoin, “like you would buy and hold property”, Saylor explains.
If the money supply is expanding at 10 percent a year … if your top line and your cashflows don’t grow more than 10 percent a year, your stock will tank … so if you want your stock to be a store of value you have to grow your cashflow per share greater than the rate of the monetary inflation.Michael Saylor, CEO, MicroStrategy
Instead of throwing more money and capital into the core business for it to grow, Saylor’s plan is simply to invest heavily in the “cash cow”, Bitcoin, to ensure the continued financial growth of the company.
Follow Michael Saylor on Twitter @saylor.