Key Points
- MicroStrategy Chairman Michael Saylor continues to defend Bitcoin, terming its volatility as the “price you pay” for its utility and liquidity.
- Saylor’s company, MicroStrategy, has seen significant growth since adopting Bitcoin, with other firms following suit.
Michael Saylor, Chairman of MicroStrategy, remains a staunch defender of Bitcoin despite recent criticism from traditional finance analysts.
Saylor argues that the volatility of Bitcoin is simply the cost of its benefits, such as the ability to create billions of dollars of credit and liquidity.
Saylor’s Views on Bitcoin and Traditional Finance
Saylor also criticized traditional finance for its inefficiency compared to Bitcoin.
He pointed out that traditional finance operates only 19% of the time for 10% of the world, making it a 2% solution, while Bitcoin is a 100% solution.
Furthermore, he described Bitcoin as a ‘digital power’ that should be adopted by governments, comparing it to nuclear and space power.
MicroStrategy’s Bitcoin Strategy
MicroStrategy’s adoption of Bitcoin has resulted in significant growth for the company.
Since adopting the cryptocurrency in 2020, the company’s shares have rallied by over 1000%.
As of August, MicroStrategy held over 226k Bitcoin and planned to acquire another $2 billion worth.
Other companies have also adopted MicroStrategy’s Bitcoin strategy, including Block Inc. in the United States and Japanese investment firm Metaplanet.
As a result of its aggressive Bitcoin adoption, Metaplanet’s TKO stock is now up +600% in year-to-date performance.
MicroStrategy’s stock also outperformed Bitcoin, with a 97% increase compared to Bitcoin’s 37%.
The company recently carried out a 10-1 stock split, making its shares more affordable.
At the time of writing, MicroStrategy was trading at $135, rebounding by 27% against Bitcoin’s 12% over the last five trading days.
