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MicroStrategy’s No-Sell Stance on Bitcoin Despite $1B Profit

Published 13/11/2023, 12:36
© Reuters.  MicroStrategy’s No-Sell Stance on Bitcoin Despite $1B Profit
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  • Michael Saylor, MicroStrategy CEO, rejects selling Bitcoin holdings, emphasizing its superiority as a long-term investment.
  • MicroStrategy’s strategy is to accumulate and hold Bitcoin, not trade or diversify.
  • Saylor advocates perceiving Bitcoin as a digital property, highlighting its potential to replace currency derivatives and weaker assets.

Michael Saylor, who has made headlines with his substantial Bitcoin investments, debunked the notion of selling Microstrategy’s Bitcoin holdings. He emphasized his commitment to the cryptocurrency, asserting that he views Bitcoin as a superior long-term investment than traditional assets.

During the interview with Christopher Jaszczynski, host and co-founder of the crypto-related YouTube channel MMCrypto, Saylor dismissed the idea of selling Bitcoin, stating, “I don’t think it’s very wise to sell Bitcoin.” Saylor’s unwavering stance on not selling Bitcoin aligns with his long-term strategy for MicroStrategy.

MicroStrategy, the business intelligence company Saylor leads, has consistently increased its Bitcoin holdings. From the initial acquisition of 17,732 BTC in the fall of 2020, MicroStrategy’s holdings have now surged to an impressive 158,400 BTC, representing a significant investment of around $4.7 billion. The company’s goal, according to Saylor, is to accumulate and hold Bitcoin by any means.

Our strategy is literally to acquire more Bitcoin. Our strategy is not to trade. Our strategy is not Diversified Investments in a portfolio. Our strategy is very simple: We’re a levered long Bitcoin operating company.

Saylor shared that “Bitcoin is outrunning all of the other conventional asset classes,” attributing it to MicroStrategy’s approach of leveraging long on Bitcoin. He emphasized the significant returns, with Bitcoin up 192% between Aug. 10, 2020, since the firm started its Bitcoin acquisition strategy, and Oct. 31 this year, outshining stocks, gold, and bonds.

Saylor also addressed the concerns about Bitcoin’s volatility and its role as a currency and suggested perceiving Bitcoin as a “digital property rather than just a digital currency.” He argued that Bitcoin is poised to replace currency derivatives and weaker assets, becoming a superior store of value and a hedge against economic uncertainty. Saylor then encouraged selling bonds and value stocks to buy into the appreciating strength of Bitcoin.

Despite selling 704 BTC in December 2022, MicroStrategy has seen substantial unrealized profits, with recent estimates indicating over $1 billion from its Bitcoin holdings as the BTC price hits $37,000. In the recent Australia Crypto Convention, Saylor, in his speech, also predicted that demand for Bitcoin could surge by up to 10 times within the next 12 months.

The post MicroStrategy’s No-Sell Stance on Bitcoin Despite $1B Profit appeared first on Coin Edition.

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