With holdings of more than 105,000 bitcoins, MicroStrategy has established itself as the company with the highest accumulation of this cryptocurrency , surpassing firms such as Tesla (42,000 bitcoins), Galaxy Digital (16,000) or Square (8,000). Its founder, Michael Saylor, a faithful believer in this religion , is convinced of the long-term returns that investment of this digital currency can generate.
“If you have that macroeconomic vision, together with the technological vision and with a time interval of a decade, then it is not so risky. It becomes dangerous if you trade bitcoin in a short term period, such as a month”, Saylor stated during the videopodcast, Let’s Talk About Bitcoin .
Saylor, CEO of software company MicroStrategy, is currently one of the biggest cryptocurrency bosses , with a fortune of $ 2.3 billion . For him, one of the biggest problems that the investor can face is given by the intense fluctuations in the price of the cryptocurrency.
But how does MicroStrategy handle this volatility ? Saylor is focused on making sure he has enough dollar liquidity to pay for the company’s expenses over the next 12 months. This with the idea of having a margin of action and not having to liquidate their holdings in bitcoin when the market is bearish and the cryptocurrency loses value.
“We are a company that needs 500 million dollars a year. So we manage with a current account of about 50 million dollars, which we keep with a medium of exchange that is the US dollar. When we generate cash flows or have additional money that comes from equity, debt or cash flow, we put it in our treasury and as a treasury strategy we use bitcoin.
We do not use dollars because it is losing between 15 and 25% of its value per year, while the value of bitcoin increases every year. Basically, we are converting our working capital from the weakest asset to the strongest asset, “Saylor says.
Saylor is confident of the emergence of a new economic order, although it will not be appreciated in the short term. From their perspective, turning to the dollar to preserve value may be a solution for one to three years, but it will not be a good long-term decision, for a period of a decade, for example.
“You will not be able to retain value with the dollar, you will need to turn it around with a stronger asset and for me that asset is bitcoin. I see that bitcoin is stored value while the dollar is a medium of exchange,” he added. “If you have money that you don’t need in the next 12 months, then you can start investing in bitcoin,” he noted.
The CEO of MicroStrategy believes that bitcoin will become the strongest money reserve of the 21st century. “There are 8,000 million people who need hard money or a monetary asset. If they are to live a decent life, that asset must be digital,” said Saylor in past statements.
In addition, he claims that the next few decades will focus on the digital transformation of property, precisely what the world already has with bitcoin. For this reason, he is convinced that instead of buying gold, land, collectibles or storing money in the bank, what people should do to preserve the value of their assets, is to put their property in bitcoin.