MicroStrategy’s Bitcoin Binge Cannot Be Stopped
Michael Saylor’s Insatiable Appetite for Bitcoin
MicroStrategy’s bitcoin binge continues in the face of mounting pressure from skeptics. CEO Michael Saylor has become one of the mainstream faces of bitcoin for audiences in the financial and technology space. He can be seen giving interviews on CNBC, Bloomberg, CNN, Fox Business, and the like with anyone willing to talk about bitcoin. Saylor has no shortage of answers. He loves to engage and educate. Saylor’s been evangelizing about bitcoin and MicroStrategy’s bitcoin binge since his company first took a quarter-billion dollar bitcoin position in 2020.
This investment reflects our belief that bitcoin, as the world’s most widely adopted cryptocurrency, is a dependable store of value and an attractive investment asset with more long-term appreciation potential than holding cash.”— CEO Michael Saylor
MicroStrategy, traded on the Nasdaq under MSTR, has bitcoin on the balance sheet. Their bitcoin binge has led them to a position that totals into the billions and makes them one of the largest holders of the world’s most popular cryptocurrencies. Why? Because, says Saylor on Twitter, “bitcoin is a lifeboat, tossed on a stormy sea, offering hope to anyone in the world that needs to get off their sinking ship. We are witnessing the birth of a new industry during the worst financial crisis of our lifetime.”
Saylor has amassed a Twitter following into the millions. He’s unafraid to step into any corner of “crypto Twitter.” Like with his interviews on TV, if you’re willing to have the conversation about bitcoin, he’s willing to be there.
Hope.com
The company has parlayed the domain hope.com into bitcoin arm of MicroStrategy, turning it into a hub of information for anyone looking to learn more about the world’s largest cryptocurrency. The header of the site reads: Bitcoin is Hope. The domain is rare, an elusive single-word domain that only the lucky few or the forward-thinking from the early days of the internet such as Saylor can lay claim to. Hope.com. It speaks volumes.
Unique Bitcoin Binge
MicroStrategy’s bitcoin binge is unique unto themselves, unparalleled by even Elon Musk and Tesla. Musk has also waded into the crypto waters by taking a sizable bitcoin position for the electric car maker. While Tesla’s crypto holdings are solely in bitcoin, Musk regularly engages altcoin holders with memes about Dogecoin. A single tweet or remark about doge from the eccentric CEO can send the digital currency soaring.
Tesla, however, is no MicroStrategy. Saylor represents a particularly convicted bitcoiner through and through. He talks of a multi-year, at least decade long, vision for MicroStrategy’s bitcoin holdings. He sees regulation as a necessary and beneficial force for the crypto markets. He views unregulated altcoins as holding the space, including bitcoin, back.
Saylor moved first and hard. MicroStrategy has continued to add to its bitcoin holdings. Other companies such as Tesla and Block (formerly Square)hold bitcoin on their balance sheets, but beyond these select few, the next biggest publicly-traded holders of bitcoin are companies all directly involved in the space, primarily bitcoin and cryptocurrency miners.
Bitcoin Volatility
Bitcoin is young. Barely a teenager, the cryptocurrency was born in January 2009 when its network first went live. Being a nascent asset, bitcoin is volatile. Its price fluctuates wildly over both the short and long term. For traders, this is an opportunity. For skeptics, this is a criticism. For Saylor and other bitcoiners, volatility is a normal part of the path toward global adoption. It represents both price discovery and how bitcoin is impacting and being impacted by other macro forces. It’s part of the zeitgeist now. There’s no undoing that. Bitcoin is here to stay, volatility or not.
Volatility presents an opportunity to accumulate more bitcoin at different points in time. Saylor and MicroStrategy are doing just that with their bitcoin binge. Small investors do it daily, weekly, or monthly via dollar cost averaging. Holding your bitcoin, i.e., not selling it, during volatile downturns makes you a HODLer. You “HODL” bitcoin. Years ago, a panicked and likely drunk trader misspelled the word “hold” online, and the term HODL stuck.
When the price of bitcoin is down and critics are coming for MicroStrategy, Saylor is quick to joke about going to work at McDonald’s. Early in the company’s history, MicroStrategy actually had a multi-million dollar contract with the restaurant chain, so the joke hits on numerous levels.
Conclusion
MicroStrategy’s bitcoin binge does not look like it will stop anytime soon. Their thesis that bitcoin is and will continue to be a valuable asset to hold on the balance sheet remains unchanged. Look for Saylor and his team to continue seeking more opportunities to accumulate bitcoin. While we wait for other institutions to join the ranks of MicroStrategy, Tesla, and Block, these few will further reinforce their place as corporate bitcoiners.
Thanks for reading! I am not an investment or financial advisor. This is not financial advice. All opinions expressed are mine alone. If you want more content like this, sign up for my weekly email.
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