Michael Saylor, the CEO of MicroStrategy, compared the company's Bitcoin purchase strategy to real estate development in an interview with CNBC. He claims Bitcoin is like "cyber real estate" and provides long-term investment value similar to real estate in New York's financial center.
Large-Scale Bitcoin Purchase Strategy
MicroStrategy recently announced the purchase of an additional 15,350 Bitcoin on Monday, bringing the total amount the company owns to 439,000 BTC, worth approximately $46 billion. To achieve this, the company utilized convertible loans and stock issuance.
Saylor emphasized that this strategy aims to optimize shareholder returns, generating a 72.4% return on Bitcoin investments in 2024 without diluting shareholder ownership. "Every day is a good day to buy Bitcoin," he said, regardless of whether this currency's value goes up or down.
Bitcoin – "Cyber Manhattan"
Saylor compared Bitcoin to real estate in Manhattan, where value continually increases over time. "Just like how Manhattan real estate has developed through debt issuance to build more buildings, we will continue to buy Bitcoin," he shared.
Recently, the company was also added to the Nasdaq-100 list, becoming one of the most influential stocks with a weight of 0.47%. The company's stock rose more than 5% immediately after the announcement of the additional Bitcoin purchase, closing at $408.50 on Monday.
The Risks Behind a Bold Strategy
However, this strategy is not without risks. In prolonged bear markets, MicroStrategy may struggle if its stock price falls below the conversion level of its $4.8 billion debt. The company's current cash reserves are only $46.3 million, which may force them to sell Bitcoin to meet debt obligations.
Long-Term Vision
Despite facing many challenges, Saylor remains steadfast in his investment strategy in Bitcoin. He asserts, "We will continue to buy the peak forever," describing Bitcoin as a form of "cyber Manhattan," providing sustainable value and unlimited growth potential.
Regardless of whether you are a supporter or a skeptic, it is undeniable that Bitcoin is gradually establishing itself as a strategic digital asset in the eyes of major investors.