- MicroStrategy’s CEO predicts an increased institutional interest in Bitcoin after the Elon Musk-led Tesla purchase.
- MicroStrategy holds the top position as the public company with the largest amount of Bitcoin with 91,326 BTC.
In an interview for TIME magazine, MicroStrategy CEO Michael Saylor discussed how Bitcoin will be instrumental in “fixing the world’s balance sheets.” Saylor has become an advocate for the cryptocurrency while pioneering institutional participation in Bitcoin.
MicroStrategy (MSTR) initiated a Bitcoin-based treasury program to hedge against rising inflation caused by the Fed’s policies. Saylor adopted the cryptocurrency as the best safe haven to preserve its investors’ wealth. MicroStrategy was the first, but not the last public company to implement a similar strategy.
In the interview, Saylor stated that Tesla’s coming to the crypto market marked “an inflection point.” The Elon Musk-led company has an estimated valuation of around $650 billion, and by buying Bitcoin, it turned the cryptocurrency into an asset that forced other institutions to give it a second look. MicroStrategy’s CEO said:
It was an inflection point. All of a sudden, the narrative goes from “Those crazy people, what are they thinking, speculating in Bitcoin?” to “Maybe this is a real thing. This is probably not going away. Let’s try to figure out how to think about it.”
The executive considers Tesla‘s BTC purchase, Square, and his company to be “the tip of the iceberg.” Earlier this year, MicroStrategy held the “Bitcoin for corporations” event to share its treasury strategy with other companies. Saylor said the attendance was record-breaking and might be the start of a new “avalanche of institutional involvement.”
Saylor believes that in the current macroeconomic environment, Bitcoin is the best investment. He dismissed the idea that the cryptocurrency is a speculative asset and called it “a unique new technology.” Comparing BTC to Facebook and Google, he highlighted how quickly the cryptocurrency has reached $1 trillion in market capitalization. To critics, Saylor said the following:
I just think it’s a paradigm shift, so you can’t blame smart people. They’re all smart, and they were all successful. But if you go back and you look at electricity, not every smart, successful person immediately understood the implications of electricity (…) when you come up with a new paradigm, a completely utterly revolutionary way to see the world, the establishment doesn’t normally accept it.
Correlation between MicroStrategy shares and Bitcoin
Following the adoption of BTC on its balance sheet, the company’s shares have shown a high correlation with BTC’s price performance. Data from Ecoinometrics indicates that MSTR shows a gain of 476% since the company started its treasury program – Bitcoin has had gains of 411% in the same period.
MicroStrategy Performance
Mar. 19, 2021Since the start of its #Bitcoin treasury program:$MSTR +476% 🔥🔥🔥🚀$BTC +411%$NASDAQ +18.3% pic.twitter.com/TEyUq9swMt
— ecoinometrics (@ecoinometrics) March 22, 2021
Remarkably, MicroStrategy is the public company in the United States with the largest amount of BTC in its treasury, according to data from BitcoinTreasuries. The Saylor-led company has 91,326 BTC or 0.435% of the cryptocurrency’s total supply. Tesla ranks second with 48,000 BTC, followed by Square, led by Jack Dorsey.
$MSTR ▲2.3x$TSLA ▲1.7x$SQ ▲2x$MARA ▲1.8xhttps://t.co/0miOUnVfWg *4,000K BTC
Hut-8 ▲4.6x
VYGR ▲8.3x
Meitu 379=>765 BTC $RIOT ▲9.2x
–@Seetee_io ▲1.1x
+QBTC11 TBD @qrcapital ETFTotal 1,355,811 BTC (6.46%)
Value $76,753,792,384src https://t.co/WaH06QS2P4 by @nvk pic.twitter.com/9Vs0WFRsyc
— BitcoinTreasuries.org (@BTCtreasuries) March 22, 2021
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