MicroStrategy Inc. Chairman Michael Saylor discussed his views on Bitcoin and the best way his company will handle its huge investment going forward during an interview on CNBC.
“We’re buying it to hold it 100 years. So, that being the case, that $66,000 to $16,000 crash. That shook out the tourists. That shook out the nonbelievers. When it was 16,000, we were all in a position to ride it to zero. And that’s what you’ll find with the Bitcoin maximalists.”
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MicroStrategy has amassed greater than 193,000 tokens over the past several years, making it the most important institutional holder on this planet. On the time of writing, the tokens are price nearly $14 billion.
Saylor also discussed the differences between buying MicroStrategy shares and among the many recently approved Bitcoin exchange-traded funds (ETFs). He said that MicroStrategy shares permit you to carry Bitcoin in an “accretive” manner, as they’re using loans to repeatedly buy more. MicroStrategy recently announced that it was selling $700 million of convertible notes to buy more tokens.
Furthermore, Saylor noted that the fees charged by the ETFs, often around 0.25%, are unattractive. While this might possibly be a smaller point to Bitcoin maximalists, or those who simply want exposure to Bitcoin alone, Saylor noted that MicroStrategy is definitely “providing you with a yield in your shares” through its combination of Bitcoin holdings and business operations.
MicroStrategy has performed extremely well, up over 650% before now 12 months. Nonetheless, it is going to be essential to note that Saylor is incentivized to paint MicroStrategy shares within the simplest way possible, as he holds over 200,000 shares, price over $300 million.
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Saylor also compared Bitcoin to other assets, akin to gold, bonds and real estate, because it is digital and “you could trade it 1,000,000 times faster than conventional assets.” He also mentioned that it trades 24/7, is a world currency and that it’s decentralized and useful.
In addition to, Saylor mentioned that the halving could possibly be an additional profit to Bitcoin by the use of price. He says that Bitcoin has “no negative catalysts” because it is decentralized and doesn’t have money flows. Furthermore, he mentioned that the halving could reduce the amount of selling activity, since the miners would have less BTC to sell each day. Based on Saylor, the halving will reduce the amount of Bitcoin mined each day from 900 to 450.
Saylor also discussed the underlying business operations of MicroStrategy. Though it’s a software company, Saylor said that he’s hoping to rebrand as a “Bitcoin development company” that uses the operating money flows from the software business to fund more Bitcoin purchases.
Saylor closed the interview by urging viewers to not take into consideration Bitcoin as a currency, but as “digital property; a billion-dollar constructing in cyberspace … the killer application is capital preservation for everybody.”
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This text Michael Saylor: Bitcoin’s ‘$66K To $16K Crash … Shook Out The Nonbelievers’ As MSTR Is Up 650% In The Past 12 months originally appeared on Benzinga.com
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