Komal Joshi · Dec 1, 2020 . 6min read
MicroStrategy CEO unveils 100-year outlook strategy behind Bitcoin investment
Happy to invest $250M 2 months back in Bitcoin, MicroStrategy CEO Michael Saylor plans to hold his Bitcoin for 100 years.
By Komal Joshi · Oct 24, 2020 . 6min read
MicroStrategy CEO Michael Saylor explained in a recent interview that MicroStrategy’s Bitcoin investment was part of its corporate 100-year outlook and the firm’s strategy to utilize the Bitcoin standard. He reveals on intending to hold his company’s Bitcoin (BTC) for more than 100 years. The company had purchased 21,454 BTC for $250 million two months backs, now worth more than $278 million.
Since it purchased 21,454 BTC on Aug 11, MicroStrategy’s initial Bitcoin investment has reached close to $30 million in just over two months. The firm also made a $175 million second BTC investment in September. Chatting to Real Vision CEO, Raoul Pal on Oct 21, Saylor confirmed his BTC plan had been the outcome of outlining and discussion amongst the business intelligence firm’s investors, the board of directors, auditors, and executives.
In an effort to restructure its financial system between the recent financial uncertainties in the Covid-19, MicroStrategy then went ahead to invest in digital assets as a long-term store of value. It started to examine assets that could serve as a safe haven or a long-term store of wealth. It was after the firm reached a settlement to restructure its treasury. In accordance with the MicroStrategy CEO, Bitcoin was the only asset that offered a robust 100-year outlook. Saylor explained that other assets they examined were all exposed to taxation and fees.
Michael Saylor on Bitcoin and Gold
When linking Bitcoin to gold, Saylor mentioned the crypto assets history of growing in value. He also emphasizes its rarity and short supply, and its functionality in terms of storage and transport of wealth. He called Bitcoin as an offering related monetary utilities as gold. Moreover, he mentions an example to demonstrate his point. He says that if one holds $100 million in cash over 100 years, 99% of it will be lost. However, if kept in gold, 85% will still be lost at best. He compares BTC to gold as what steel is to bricks. Saylor concluded the two-hour-long interview by noting that his executives are closely watching developers in the crypto space.
While Microstrategy is happy with their decision to fund in Bitcoin as the crypto made its bull run this week, however, they are not the only company that is celebrating. Grayscale Investments is also sure to create Bitcoin FOMO amongst institutions still hesitant to venture into BTC. According to a recent report released, Grayscale has crossed the $7 billion mark in total assets under management.
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