MicroStrategy CEO Turns from No Faith in Bitcoin to Crypto Investor

Bitcoin


During August and September, MicroStrategy company invested $425 million of cash in Bitcoin. This decision came after it decided to have Bitcoin serve as a primary treasury reserve asset on an ongoing basis.

MicroStrategy CEO Michael J. Saylor commented on a press release in August that this investment reflects the company’s belief in Bitcoin as the world’s most widely-adopted cryptocurrency. However, this does not seem to be the same opinion of Saylor as he stated years ago.

In December 2013, Saylor said in a tweet that Bitcoin’s days were numbered. “It seems like just a matter of time before it suffers the same fate as online gambling.”

To clarify, by the time Saylor sent his 2013 tweet, the Tokyo-based company Mt. Gox announced its bankruptcy and the disappearance of $460 million, apparently stolen by hackers, with another $27.4 million missing from its bank accounts.

At the same time, the Chinese government issued a press release outlining the risks of cryptocurrency for its citizens. Decrypt attributed this change in opinion to online gambling valued at more than $53 billion in 2019. It added that Bitcoin is up more than 15x since Saylor’s 2013 tweet.

Saylor’s real opinion

On September 16, Saylor told Anthony Pompliano on The Pomp Podcast that he really forgot about his 2013 tweet. 

Bitcoiners reminded Saylor of his tweet just after he announced his company’s buying deal in September. He explained that he posted more freely on Twitter in 2013. These days, he tweets about MicroStrategy and its research. Bitcoin’s rising price has led Saylor back to crypto.

Regarding the real reason behind going for Bitcoin, Saylor attributed that it was the ultimate inflation hedge and asserted that Bitcoin was 1000x better than gold in that role.

Earlier decision

MicroStrategy (MSTR) approved on Monday 14 September a new policy to have Bitcoin serve as the primary treasury reserve asset on an ongoing basis.

The company clarified in a filing that the new policy splits the treasury reserve assets into cash and Bitcoin.

Cash assets are cash, cash equivalents, and short-term investments held by the company that exceed working capital needs, it clarified. It added that it will set aside other assets for Bitcoin.

Therefore, MicroStrategy expects its Bitcoin holdings to increase, exceeding the amount of $250 million as of 11 August 2020.

According to Seeking Alpha, MicroStrategy shares popped earlier after the announcement of spending half of its $500 million cash hoard to purchase Bitcoin.

More about MicroStrategy

Michael J. Saylor and Sanju Bansal founded MicroStrategy in 1989. The company operates on transforming data into real-world intelligence and answers their toughest business questions. It provides business intelligence, mobile software, and cloud-based services.

Moreover, the company has a market capitalisation of $1.2 billion. Its shares are also traded on NASDAQ.

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Hanan Hamed 48 Articles
a bilingual journalist. She writes in both Arabic and English. She has been writing news and features for 7 years now. She is specialized in business and economic news.