Michael Saylor, once a bitcoin critic, has used Microstrategy, a company that was not in anybody’s sights, into one of Wall Street’s most traded and renowned institutions. Saylor, co-founder and executive chairman of Microstrategy, seems to have developed a bitcoin-focused “infinite money glitch” operation in the company, that has yielded excellent results for its shareholders.
Saylor has become one of the champions of the bitcoin proposal within the corporate world, with many companies copying his playbook, including Semler Scientific with 1,273 BTC and Japan-based Metaplanet, which recently issued debt to continue purchasing bitcoin as part of a bitcoin-centric strategy.
Read more: Semler Scientific Reports Half-Year BTC Yield of 37.3%, Acquires Additional 215 Bitcoin
While popular for its results, Saylor’s strategy of issuing debt to purchase bitcoin and repeating this as prices reach record levels each week has its detractors. Peter Schiff, an economist and known gold bug, recently referred to this scheme, stating that it might have unexpected consequences for the U.S. financial system.
Schiff stated:
The higher the price of $MSTR stock, the more shares Saylor can sell. The more shares he sells, the more bitcoin he can buy. The more bitcoin he buys, the higher the Bitcoin price rises. When the price of Bitcoin goes up, the share price of MSTR goes up more. When does it end?
Schiff criticizes the so-called ‘infinite money glitch,’ stating that the reality is that all the bitcoin hoarded by companies and individuals represents unrealized gains. He fears that allocating resources to bitcoin might endanger the U.S. economy and the dollar through inflation and devaluation.
Nonetheless, bitcoin is rising now because people in the higher echelons have changed their position on it after previously declaring it a solution seeking a problem. Saylor himself was one of them, having proclaimed the death of bitcoin back in 2013.
Sustainable or not, Microstrategy will continue to ride on Saylor’s perspective due to the increased demand for its convertible senior notes, the funds from which will be directed toward growing its already impressive bitcoin stash.
Read more: Microstrategy Unleashes $2.6B Bet on Bitcoin With Convertible Notes Offering
