basic ideas

  • Michael J. Saylor is a renowned entrepreneur, CEO, and Bitcoin advocate, and is the co-founder and CEO of MicroStrategy.

  • Michael Saylor calls Bitcoin “digital gold” and leads MicroStrategy’s cryptocurrency investment strategy. As of November 2024, the company owns more than 1.4% of the total BTC supply, estimated at more than 330,000 bitcoins.

  • MicroStrategies uses aggressive debt strategies, including convertible debt securities, to fund its Bitcoin purchases. Saylor’s approach has garnered institutional interest and influenced cryptocurrency market dynamics.

Who is Michael Saylor?

Michael J. Saylor is a prominent entrepreneur, CEO, and Bitcoin advocate. Known as the co-founder and CEO of MicroStrategy, Saylor has played a critical role in raising awareness of Bitcoin and increasing corporate adoption of Bitcoin and blockchain technology. He has also contributed significantly to MicroStrategy’s growth and development over the years.

Born in Lincoln, Nebraska, Saylor attended MIT on an Air Force Reserve Officers Training Corps scholarship, earning a dual degree in aeronautics and astronautics.

Saylor's opinion on Bitcoin

Saylor often calls Bitcoin “the pinnacle of humankind’s property,” saying it is better than gold or any other traditional store of value. According to him, Bitcoin is the safest and most portable asset you can own because of its resilience to inflation and government intervention.

What is MicroStrategy?

Saylor co-founded MicroStrategy in 1989 with Sanju Bansal. MicroStrategy is a business intelligence, mobile software, and cloud solutions company. The company went public in 1998 through an initial public offering (IPO). Its ticker symbol on the NASDAQ is MSTR.

MicroStrategy and Bitcoin

Although MicroStrategy has been focused on producing data mining software and business intelligence solutions for many years, the company gained popularity when it began investing in Bitcoin as a treasury reserve asset.

In 2020, Michael Saylor made headlines when he decided to steer MicroStrategy into the world of cryptocurrencies. At the time, the world was dealing with economic uncertainty due to the COVID-19 pandemic, and Saylor feared that inflation would drain MicroStrategy’s cash reserves.

In August 2020, MicroStrategies made its first purchase of Bitcoin, worth $250 million. Saylor justified the investment by stating that Bitcoin was not just another digital trend but “digital gold” that could protect wealth from inflation and provide long-term value. The company has since continued to buy Bitcoin and now owns over 300,000 BTC (over 1.4% of the cap).

Debt Financing Offers for Bitcoin Purchase

What sets MicroStrategy apart from other Bitcoin companies is its aggressive strategy of using debt to finance its Bitcoin purchases. The company has raised billions of dollars by selling convertible notes, which are essentially debt instruments that investors can later exchange for cash, MicroStrategy (MSTR) stock, or both.

For example:

  • In late 2020, MicroStrategy raised $650 million, all of which was used to buy bitcoin. This was followed by rounds of borrowing, including a $500 million senior secured bond offering in 2021.

  • In October 2024, MicroStrategy announced its plan to raise $42 billion to buy more bitcoin over the next three years.

  • In November 2024, it announced the pricing of a convertible senior notes offering that was set to raise approximately $2.6 billion. It ended up raising $3 billion in notes with maturities through 2029.

Through November 2024, the company has issued six convertible bonds, maturing from 2027 to 2032.

Many see this strategy as risky, but Saylor says it is worth it because Bitcoin is the “scarcest asset” in the world, likening it to owning “digital real estate,” and asserting its ability to combat inflation.

High return, high risk

While Saylor’s strategy has been profitable in bull markets, it also comes with risks. MicroStrategy’s massive investment in bitcoin means its financial health is closely tied to the volatile price of bitcoin. For example, when bitcoin’s value fell in 2022, some worried that the company might face “leverage trading demand” on its loans, but it has ultimately weathered the storm.

How many bitcoins does MicroStrategy own?

As of November 2024, MicroStrategy held 331,200 Bitcoins, worth over $32.5 billion. MicroStrategy has purchased BTC over the years using a dollar-cost averaging (DCA) strategy. It purchased the 331,200 Bitcoins for approximately $16.5 billion, at an approximate average cost of $50,000 per BTC.

The Broader Impact of Saylor's Bitcoin Advocacy

Institutional accreditation

Saylor’s outspoken advocacy had a ripple effect throughout the corporate world. By demonstrating the viability of holding bitcoin as a treasury reserve, he inspired other companies to explore investing in cryptocurrencies. Companies like Tesla, Square, and others followed similar paths, legitimizing bitcoin as an institutional asset.

Market Dynamics

MicroStrategy’s large-scale acquisitions have also impacted the market price of Bitcoin. The company’s purchases often involve large volumes, sometimes causing price spikes and increased market activity. This highlights the growing role of institutional investors in shaping cryptocurrency markets.

Michael Saylor net worth

In November 2024, Michael Saylor’s net worth exceeded $11 billion. It is worth noting that MicroStrategy’s massive Bitcoin purchases helped drive MSTR’s stock price up more than 450% in 2024.

Closing thoughts

As cryptocurrencies become more integrated into mainstream finance, Michael Saylor is likely to remain a leading voice in the space. MicroStrategies’ focus is clear: continue to buy Bitcoin and advance its potential as the future of money.

For Saylor, Bitcoin represents more than just a business strategy, it is a belief in a decentralized financial system that can empower people around the world. Whether you see Michael Saylor as a visionary or a risk-taker, there is no denying that he is a prominent figure in the financial sector and the cryptocurrency space.

Disclaimer: This content is provided to you “as is” for general informational and educational purposes only, without any representations or warranties of any kind. It should not be construed as financial, legal, or other professional advice, nor is it intended as a recommendation for the purchase of any particular product or service. You should seek professional advice from professional advisors. If an article is provided by a third party, please note that the opinions expressed are those of the third party and do not necessarily reflect the views of Binance Academy. Please read the full disclaimer here for more details. Digital assets may fluctuate in price, the value of your investment may go up or down, and you may not get back the amount you invested. You are solely responsible for your investment decisions and Binance Academy is not responsible for any losses you may incur. This article should not be construed as financial, legal, or professional advice. For more information, please see our Terms of Use Risk Warning.