In a Keynote address at MicroStrategy World: Bitcoin for Corporations, MicroStrategy Executive Chairman Michael Saylor delivered a masterclass on corporate finance and the power of bitcoin to supercharge corporate balance sheets. Saylor made a point to emphasize Bitcoin as the single solution for capital appreciation in an inflationary environment.

In his speech, Saylor likened the cost of capital to being the benchmark which a company must surpass to increase its purchasing power, arguing that “Bitcoin is the only asset that exceeds the cost of capital. Another way to say that, is everything else is dilutive.”

Further describing the true cost of capital, he noted that the “S&P is the modern surrogate for the cost of capital… If you had to pick one metric and say, what’s the metric that gives you a sense of how rapidly the world currency supply is expanding in dollars? Probably the S&P 500… this is another way to see inflation.”

Saylor went on to emphasize his belief that all assets, except bitcoin, are not accretive to corporate balance sheets despite their general acceptance. In particular, he highlighted the relative underperformance of the silver, gold and US government bonds:

“[If companies] invested in T-bills, they’re going to get 3% after tax against a 12% cost of capital per year. And so you hold $100 billion of capital, you destroy $9 billion of shareholder value a year… The story here is that the bonds don’t hold value, right? They’re awful capital assets. Silver doesn’t work. Gold doesn’t keep up with the cost of capital.”

There Is No Second-Best Crypto Asset

The MicroStrategy Executive Chairman noted key differences between Bitcoin and alternative cryptocurrencies like Ethereum, expressing the importance and necessity of proof-of-work-based consensus in creating a digital commodity.

“You could see the writing on the wall when the spot ETF of Bitcoin was approved in January. By the end of May, you’ll know that Ethereum is not going to be approved. And when Ethereum is not going to be approved, sometime this summer it’ll be very clear to everyone that Ethereum is deemed a crypto asset security, not a commodity. After that, you’re going to see that [for] Ethereum, BNB, Solana, Ripple, Cardano – everything down the stack.”

On the point of Bitcoin’s energy use, Saylor invoked the idea of a “physical linkage to the real world” in Bitcon’s consensus. He described the network as having “raw digital power standing in the way of anybody that would try to undermine the integrity of the network… The network is feeding on electricity, and that creates a decentralizing dynamic that drives all of the network to the end of the grid in the quest of stranded energy.”

It’s Going Up, Forever

Saylor’s conviction and use of physics-based metaphors were present as ever as he spoke on Bitcoin’s price appreciation and continued monetization. “It’s never declining. The chart’s not ever decreasing. It only goes one way. Bitcoin is a capital ratchet. It’s a one-way ratchet. Archimedes said, give me a lever long enough and a place to stand and I can move the world. Bitcoin is the place to stand.”

“There’s no more powerful idea than the digital transformation of capital… No force on earth can stop an idea whose time has come. This is an idea. Its time has come. It’s unstoppable. And so I’m going to end with the observation that Bitcoin is the best. The best what? The best.”

Watch the full MicroStrategy World: Bitcoin for Corporations Day 2 Livestream on the Bitcoin Magazine YouTube Channel

Source: Bitcoin Magazine

The post Michael Saylor Delivers Bitcoin Masterclass To Fortune 1000 Companies appeared first on Crypto Breaking News.

The recent increase in the price of Bitcoin has done wonders to reestablish the community's faith in the leading cryptocurrency. But, one shareholder in particular, Michael Saylor's Microstrategy, welcomed the raise. When Saylor made the decision to buy #BTC as an inflation hedge in August 2020, the IT company went all-in.

Under the leadership of Michael Saylor, a Bitcoin maximalist, #Microstrategy has bought 132,500 BTC with a staggering $4.03 billion book value. The acquisitions cost, on average, $30,397. The Bitcoins were bought through a number of loan agreements and bond issues.

The recent 44% gain in Bitcoin's price over the last week has reportedly taken Microstrategy's BTC bet closer to its breakeven price of $30,137, according to a recent tweet by DB Newswire. Michael Saylor's Bitcoin holdings are currently worth more than $3.7 billion. The current P&L of the Bitcoin acquisition is $285 million at -7.15%.

The price of Microstrategy's stock has increased as a result of the #bitcoin price surge. From the start of BTC's climb on March 10, the stock has increased by more than 13%. The stock, which is presently trading at $267, frequently tracks the ups and downs of the leading cryptocurrency.

Based on the present valuation-to-cost ratio of #bitcoin , it is observed that just two out of the five leading publicly listed Bitcoin holding firms are experiencing a favourable financial standing.
In September, #Microstrategy shown a persistent inclination towards acquiring Bitcoin (BTC), even in the face of declining stock prices.
On October 11, there was a significant decline in the value of BTC treasury in comparison to October 9.
During the month of October, there was a marginal decrease observed in the Bitcoin holdings of publicly traded firms, sometimes referred to as Bitcoin 'treasuries'. Out of the five major Bitcoin holders that are publicly listed, only Marathon and Coinbase are now in a favourable financial situation, as indicated by their value-to-cost ratio (NgU) in the table provided. MicroStrategy is consistently increasing its acquisition of Bitcoin (BTC), resulting in the company's Bitcoin holdings being estimated at over $4.5 billion.

MicroStrategy is at the forefront of the accumulation of Bitcoin.
There was an increase in the Bitcoin treasury holdings of publicly traded firms in the United States, with the amount rising from 1.60 million BTC on August 30 to 1.70 million BTC on August 31. According to the statistics provided by Bitcoin Treasuries, the quantity of BTC assets held by publicly listed businesses had an initial surge to 1.71 million units till October 9, followed by a subsequent sharp decline to 1.68 million units.
MicroStrategy, Inc. emerges as the leading entity in terms of BTC holdings, with a substantial market value of $4.6 billion. Approximately 97.5% of the total value is derived from Bitcoin. The organisation possesses a Bitcoin balance of 158,245 BTC, which is presently estimated to be worth over $4.5 billion.

In 2023, MicroStrategy has persisted in accumulating Bitcoin, with the present Bitcoin value-to-cost ratio standing at 0.97. This ratio suggests that the value of the company's Bitcoin holdings is somewhat lower than the price at which these assets were acquired. By September 24, the business had accumulated a total of 5,445 BTC. This acquisition followed the procurement of 467 BTC in July and 12,333 BTC in June.
According to statistics from Yahoo Finance, MicroStrategy had robust performance in the month of July, as its stock price exceeded the threshold of $460. Subsequently, the price has decreased to $330 as at the present moment. In August of the previous year, Michael Saylor resigned from his position as the chief executive officer of the firm due to the company's increasing financial deficits.
Marathon Digital Holdings, a company with a market capitalization of $1.6 billion, possesses a total of 11,466 bitcoins, which are now worth at around $327 million. The current ratio of Bitcoin holdings to cost for the corporation is at 1.73, indicating a lucrative position. According to the data provided by Bitcoin Treasuries, Marathon engaged in the sale of 766 BTC during the month of March in the current year, without undertaking any additional acquisitions.
Tesla, Inc., with a market cap of $770 billion, maintains a Bitcoin balance of 9,720 BTC, currently valued at $277 million. Despite having a relatively low current value-to-cost ratio of 0.82, Tesla is a prominent entity among the largest listed holdings. Despite Tesla's Q3 2023 financial report indicating a lowering of its operating profit margin to 7.6%, this development has occurred.
Coinbase Global, Inc., a company with a market capitalization of $17.5 billion, possesses a significant amount of Bitcoin, namely 9,480 BTC, which is now worth at over $270 million. Coinbase demonstrates a significantly high value-to-cost ratio of 2.31, positioning it favourably among the leading firms in the market. The Nasdaq-listed exchange has a history of annual accumulation sprees in December 2020, 2021 and 2022 and hasn’t sold its holdings based on data by Bitcoin Treasuries.
Hut 8 Mining Corp, a company headquartered in Canada, possesses a market capitalization of $397 million. Within its holdings, Hut 8 Mining Corp now possesses 8,388 BTC, which is estimated to have a value of around $239 million.
Publicly listed technology businesses have a notable degree of confidence in the viability and potential of Bitcoin.
The treasury worth of these firms had a decline from 1.71 million BTC to 1.68 million BTC during the dates of October 9 and 11. The stability persisted until October 18th. The presence of institutional buying is evident in the month-to-date flows reported by CoinShares. According to the data, the monthly total value of Bitcoin transactions is $56.6 million.
Upon further examination of stocks associated with Bitcoin, it becomes evident that a significant proportion of firms in the technology sector, namely 74%, own exposure to Bitcoin.

Despite the considerable price volatility of Bitcoin subsequent to the collapse of FTX, several publicly listed firms, particularly those operating within the technology sector, persist in expressing their trust and belief in the potential of Bitcoin. According to the data provided by CoinGecko, the public-company-Bitcoin-dominance ratio is at 1.23%. These public companies collectively possess over 239,494 BTC, which is estimated to be worth at roughly $6.8 billion.

Michael Saylor’s MicroStrategy has increased its BTC exposure, bringing the company’s total holdings to 0.754% of Bitcoin’s total supply.
Read more on: https://thecryptobasic.com/2023/09/25/microstrategy-adds-5445-bitcoin-now-owns-0-754-of-btc-supply/
#bitcoin #BTC #Microstrategy #crypto #cryptonews