In a recent interview with CNBC, MicroStrategy CEO Michael Saylor expressed his unwavering confidence in the potential of bitcoin (BTC). Delving into the digital asset’s complex trajectory, Saylor highlighted the company’s staunch conviction, bitcoin’s impressive resilience, and the importance of maintaining a long-term perspective when coping with market volatility.
Saylor made several significant revelations during the interview, sharing valuable information on MicroStrategy’s bitcoin holdings. Despite experiencing considerable losses in the 2022 bear market when BTC’s value nosedived to $15k levels during the FTX crash in November, Saylor revealed that the fair market value of the company’s BTC holdings has significantly recovered. According to him, MicroStrategy’s BTC holdings grew from a modest 38,000 BTC in Q3 2020 to an impressive 140,000 BTC, seeing a $2 billion increase in value over the past 12 weeks alone.
In addition to sharing his bullish insights on bitcoin, Saylor discussed how MicroStrategy utilizes its software business as a “cash cow.” By leveraging the robust revenues generated from software operations, the company can cover interest payments, fulfill financial liabilities, and continue accumulating more bitcoin. This dual-engine approach enables MicroStrategy to withstand the stormy weather during uncertain times as the crypto market remains volatile.
While acknowledging short-term market volatility, Saylor stressed bitcoin’s 50% year-on-year increase over the last three years, emphasizing that the digital asset is a long-term bet. Two key factors driving bitcoin’s continued growth in 2023 are inflation concerns and regulatory crackdowns.
As people increasingly lose faith in traditional fiat currencies, bitcoin’s digital scarcity makes it an appealing hedge against inflation. Moreover, the recent collapse of four central US banks has amplified public skepticism towards the existing financial system, boosting bitcoin’s demand.
From a regulatory standpoint, Saylor argued that money flows from the broader crypto ecosystem into bitcoin as it is deemed a safer digital asset. Despite the SEC’s probe and subsequent regulatory crackdowns, Saylor remains optimistic about bitcoin’s future. In his opinion, as people lose faith in exchanges, coins, and stablecoins, they naturally gravitate towards parking their funds in BTC. This trend increases the market value of bitcoin and solidifies its position as “the best crypto asset.”
In conclusion, amidst the growing uncertainties in the financial landscape, Saylor and MicroStrategy’s bullish stance on bitcoin’s future remain unwavering. Only time will tell if this optimism is well-founded, but the company’s steadfast conviction and the digital asset’s notable resilience provide ample food for thought for crypto enthusiasts and skeptics alike.
Source: crypto.news
