Michael Saylor, CEO of MicroStrategy, has shared deep insights into the company’s long-term commitment to Bitcoin, highlighting the essential difference between permanent Bitcoin capital and overnight deposits held by other financial giants, such as BlackRock.
Permanent Bitcoin Capital vs. Overnight Deposits
🔶 "MicroStrategy has $16 billion of permanent Bitcoin capital", Saylor explains, contrasting it with BlackRock’s $22 billion in overnight deposits. The difference lies in the stability: MicroStrategy’s Bitcoin holdings are permanent, while BlackRock’s deposits could be withdrawn by clients at any moment.
🔶 "You understand the difference between having $16B forever versus having $22B that people can withdraw tomorrow," Saylor emphasizes.
Building a Massive Digital Capital Base
🔶 Saylor describes MicroStrategy’s objective as establishing a "massive digital capital base" to support its offerings in equity, options, derivatives, and fixed income instruments. This strategic foundation enables MicroStrategy to leverage its Bitcoin holdings in ways that extend far beyond simple retention.
🔶 "The key idea is that one company can be the leading Bitcoin bank. To be that company, you need to be 150% Bitcoin," Saylor states.
Addressing Risk in Bitcoin Strategy
🔶 Anticipating concerns about risk, Saylor acknowledges the boldness of the strategy: "You might ask, 'Aren't you taking a lot of risk?'" His answer is clear: "The only risk I’m taking is Bitcoin risk. If I diversify that risk, it would destroy our pure play."
🔶 He notes that diversifying into other assets would reduce volatility but would also limit liquidity and weaken MicroStrategy’s position in options and fixed income markets.
Securitizing Bitcoin as an Asset Class
🔶 Saylor reveals MicroStrategy’s aim to securitize Bitcoin as an asset class. For Saylor, Bitcoin is more than just an investment; it’s the cornerstone on which MicroStrategy’s future will either thrive or fail.
🔶 "We will live or die based on Bitcoin," he declares, underscoring the company’s unwavering commitment to a Bitcoin-centric vision.
This bold, all-in approach to Bitcoin sets MicroStrategy apart in the financial world, positioning it as a pioneer in what could be the future of digital banking.
