Understanding Michael Saylor in One Article

Key points

• Michael J. Saylor is a well-known entrepreneur, corporate executive, and active advocate for Bitcoin, and he is also a co-founder and executive chairman of MicroStrategy.

• Michael Saylor advocates viewing Bitcoin as "digital gold" and has led MicroStrategy's cryptocurrency investment strategy. As of November 2024, MicroStrategy holds over 330,000 Bitcoins, accounting for more than 1.4% of the total BTC supply.

• MicroStrategy adopts a bold debt financing strategy (including convertible bonds) to fund Bitcoin purchases. Saylor's strategy has attracted the attention of institutional investors and has had a significant impact on the cryptocurrency market.

Understanding Michael Saylor in One Article

Michael J. Saylor is a well-known entrepreneur, corporate executive, and active advocate for Bitcoin, best known as the co-founder and executive chairman of MicroStrategy. He has played a crucial role in raising public awareness of Bitcoin and blockchain technology, as well as promoting enterprise applications. Additionally, he has made significant contributions to the growth and development of MicroStrategy over the years.

Saylor was born in Lincoln, Nebraska, and entered the Massachusetts Institute of Technology (MIT) on an Air Force ROTC scholarship, earning dual degrees in aerospace engineering.

Saylor's views on Bitcoin

Saylor often refers to Bitcoin as "the greatest asset of humanity" and believes it is superior to gold or other traditional stores of value. He firmly believes that Bitcoin possesses the ability to resist inflation and government intervention, making it the safest and most portable asset.

What is MicroStrategy?

In 1989, Saylor co-founded MicroStrategy with Sanju Bansal. It is a company focused on business intelligence (BI), mobile software, and cloud solution development. In 1998, MicroStrategy went public on Nasdaq through an IPO, with the stock ticker MSTR.

MicroStrategy and Bitcoin

Although MicroStrategy has focused on developing data mining and BI solution software for many years, the company began to attract widespread attention when it started investing in Bitcoin as a treasury reserve asset.

In 2020, Michael Saylor decided to lead MicroStrategy into the cryptocurrency space, making headlines. At that time, the world was facing economic uncertainty due to the COVID-19 pandemic, and Saylor was concerned that inflation would erode the company’s cash reserves.

In August 2020, MicroStrategy purchased its first Bitcoin worth $250 million. Regarding this investment, Saylor stated that Bitcoin represents not only another digital trend but also a "digital gold" that can withstand inflation and achieve long-term wealth appreciation. Since then, MicroStrategy has consistently increased its Bitcoin holdings and now holds over 300,000 BTC, exceeding 1.4% of the maximum supply.

Debt financing to increase Bitcoin holdings

Compared to other companies involved in Bitcoin, MicroStrategy's uniqueness lies in its bold strategy of increasing Bitcoin holdings through borrowing. The company has raised billions of dollars by issuing convertible bonds. Convertible bonds are essentially a promissory note that investors can choose to convert into cash, MicroStrategy stock (MSTR), or a combination of both in the future.

For example:

• At the end of 2020, MicroStrategy raised $650 million and used all the funds to purchase Bitcoin. Subsequently, MicroStrategy undertook multiple rounds of borrowing, including a $500 million secured bond issued in 2021.

• In October 2024, MicroStrategy announced plans to raise $42 billion over the next three years to further increase its Bitcoin holdings.

• In November 2024, the company announced the issuance price of its convertible senior bonds, expecting to raise about $2.6 billion. Ultimately, this bond issuance raised a total of $3 billion, with the bonds maturing in 2029.

As of November 2024, MicroStrategy has issued six rounds of convertible bonds, with maturity dates ranging from 2027 to 2032.

Although many believe this strategy is high-risk, Saylor thinks it is worth it because Bitcoin is the world's "most scarce asset." He likens Bitcoin to "digital real estate," emphasizing its unique advantages in resisting inflation.

High returns come with high risks

While Saylor's strategy yielded substantial returns in a bull market, it also came with significant risks. MicroStrategy's heavy investment in Bitcoin tightly linked its financial condition to Bitcoin's price fluctuations. For instance, when Bitcoin's price dropped in 2022, there were concerns that the company might receive a "margin call" related to its liabilities, but ultimately, MicroStrategy successfully weathered the storm.

How much Bitcoin does MicroStrategy hold?

As of November 2024, MicroStrategy holds 331,200 Bitcoins worth over $3.25 billion. The company has adopted a Dollar Cost Averaging (DCA) strategy for purchasing Bitcoin over the years, with a total acquisition cost of about $1.65 billion for these 331,200 Bitcoins, averaging around $50,000 per Bitcoin.

Saylor advocates for the widespread impact of Bitcoin

Institutional adoption

Saylor's outspoken and proactive advocacy has triggered a chain reaction throughout the corporate world. He has demonstrated the feasibility of treating Bitcoin as a treasury reserve asset through his actions, inspiring more companies to explore the potential for cryptocurrency investment. Companies like Tesla and Square have also followed suit, laying the groundwork for Bitcoin's legitimacy as an institutional asset.

Market dynamics

MicroStrategy's massive Bitcoin investments have also had a noticeable impact on market prices. Due to the sheer volume of Bitcoin purchased by the company, it occasionally pushes prices higher and intensifies market activity. This phenomenon highlights the increasingly important role of institutional investors in the cryptocurrency market.

Michael Saylor's net worth

As of November 2024, Michael Saylor's net worth exceeds $11 billion. Notably, under the influence of MicroStrategy's significant Bitcoin investments, MSTR's stock price rose over 450% in 2024.

Conclusion

As cryptocurrency gradually integrates into the mainstream financial system, Michael Saylor is likely to remain a leading figure in this field. MicroStrategy's future strategy is also very clear: to continue increasing its Bitcoin holdings and advocate for Bitcoin's potential as the currency of the future.

For Saylor, Bitcoin is not just a business strategy but represents his firm belief in the empowering potential of decentralized financial systems for individuals worldwide. Whether you view him as a visionary dreamer or a daring pioneer, there is no doubt that Michael Saylor is a key figure in the financial and cryptocurrency sectors.

Further reading

• What is Bitcoin and how does it work?

• Is Bitcoin a store of value?

• Understanding Dollar Cost Averaging (DCA)

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