Michael Saylor, one of the most influential figures in the cryptocurrency world and known as a “Bitcoin maximalist,” made groundbreaking statements about MicroStrategy’s Bitcoin asset management strategy in a recent interview. Saylor stated that under the company’s new financial model, it can now maintain its focus as a “net buyer,” selling Bitcoin for operational needs.
Saylor clarified the viral slogan “Never sell your Bitcoin,” stating that what he really meant was “never be a net seller.”
Saylor said, “If we sell one Bitcoin, it means we’re buying ten or twenty in its place. The important thing is to have more Bitcoin by the end of each year than we started with.”
Contrary to popular belief, this decision to sell stems not from a liquidity crunch, but from institutional perception management. Saylor listed the reasons why they were open to selling Bitcoin as follows:
- To refute the arguments of some critics and short sellers that “MicroStrategy can never sell its Bitcoins, therefore these assets are worthless,” Saylor stated that they wanted to prove that the $65 billion in assets on the balance sheet were “real and liquid.”
- To use Bitcoin’s capital gains to pay dividends on the “Stretch” (STRC) type credit instruments issued by the company.
- To protect the company’s financial strength by using the Bitcoin spot market, the world’s most liquid market, during times when stock markets are illiquid.
Saylor likened Bitcoin to a real estate development model: “You buy a piece of land, develop it, and when it appreciates in value, you convert a portion of that value into cash and pay the investor. What we’re doing with Bitcoin is exactly the same thing.” Reminding that Bitcoin appreciates by an average of 30-40% annually, Saylor argued that all dividends could be paid indefinitely with just a small portion of that profit (2.3%).
Responding to claims by renowned gold advocate and Bitcoin critic Peter Schiff that “MicroStrategy is a Ponzi scheme,” Saylor stated that MicroStrategy is a “Digital Treasury Company.” He explained that they create Bitcoin-based lending vehicles (STRCs) for investors wary of Bitcoin’s volatility, thereby generating returns from digital capital.
*This is not investment advice.
