In a bold but unsurprising move, MicroStrategy Inc. (MSTR) CEO Michael Saylor has declared his unwavering support for Bitcoin (BTC/USD) as a treasury reserve asset across the global finance landscape. During the company’s third-quarter earnings call on Tuesday, Saylor articulated his conviction that Bitcoin possesses the potential to remedy the precarious financial situations faced by both public and private enterprises.
Saylor argues that Bitcoin holds the key to fixing these unhealthy balance sheets, proclaiming, “Bitcoin fixes the balance sheet. It’ll bring your stock back to life. It’ll bring your options back to life. It’ll bring volatility.”
Saylor, a fervent Bitcoin advocate, actively engages with executives from various companies, both public and private, to promote the adoption of Bitcoin. He highlights initiatives like “Bitcoin For Corporations,” which offers expert guidance on the advantages of incorporating Bitcoin into a company’s financial strategy.
“So unlike a lot of industries where you don’t want competitors in our business, we’re happy to share the playbook. We’re happy to advocate. We’ll show you how to do it,” Saylor remarked, underscoring MicroStrategy’s willingness to spread the gospel of Bitcoin.
MicroStrategy’s third-quarter financial report provides further evidence of the company’s unwavering commitment to Bitcoin. During the quarter, they added 25,889 BTCs to their holdings, representing an investment of approximately $1.6 billion at an average price of $60,839. This acquisition brought their total Bitcoin stash to a whopping 252,220 BTCs, valued at $18.23 billion.
The company’s aggressive Bitcoin investment strategy has yielded substantial profits. With an average acquisition price of $9.904 billion, MicroStrategy has realized a profit of nearly $8.3 billion on its Bitcoin investments. To further bolster their Bitcoin holdings, MicroStrategy has announced plans to raise a staggering $42 billion over the next three years through a combination of equity and debt financing.
MicroStrategy’s journey into the world of Bitcoin began in August 2020 when they became the first publicly traded company to acquire and hold Bitcoin as their primary treasury reserve asset. Since then, their Bitcoin investment has skyrocketed in value, exceeding 1989%, surpassing some of the most prominent names on Wall Street, including the artificial intelligence powerhouse Nvidia.
Interestingly, MicroStrategy’s stock performance has also outpaced Bitcoin’s growth, with the leading cryptocurrency experiencing a 508% gain during the same period. Despite this impressive stock performance, the company’s net loss expanded to $340 million in the third quarter, compared to a loss of $143.4 million in the corresponding quarter of the previous year.
Saylor’s unwavering commitment to Bitcoin and MicroStrategy’s aggressive investment strategy serve as a testament to the potential of Bitcoin as a disruptive force in the global financial landscape. While the company’s stock performance is promising, it remains to be seen whether Saylor’s bold vision for a Bitcoin-centric financial world will ultimately materialize.
