Michael Saylor, executive chairman of MicroStrategy, strongly endorsed the idea of a strategic Bitcoin reserve during a CNBC interview, calling it a transformative step for nation states, companies and individuals alike.
The reaffirmation comes as Bitcoin rebounds more than 5% after a significant downturn, boosting the confidence of crypto enthusiasts and investors.
The flagship crypto was trading at $56,414 at the time of writing, up 3.32% in the past 24 hours, based on CryptoSlate data.
‘Catalytic’ moment
Saylor pointed to the Bitcoin 2024 conference in Nashville as a pivotal moment for the crypto industry. The event attracted high-profile figures including presidential candidates, governors, senators, CEOs and billionaire investors.
He also praised the introduction of Senator Cynthia Lummis’ Strategic Bitcoin Reserve Bill and its official introduction in the Senate. Saylor said it marked a significant shift in perception, comparing the moment to historic acquisitions such as the Louisiana Purchase. He noticed:
“The Overton window shifted. Now it is possible to talk about nation states that have Bitcoin on their balance sheets.”
The Bitcoin Act aims to create a supply of BTC that would only be used to reduce the country’s national debt. It would also mandate the government to acquire 200,000 BTC annually for five years.
Saylor argued that Bitcoin’s nature as a scarce and desirable digital asset makes it an attractive asset for nation states. He likened acquiring Bitcoin to buying valuable real estate, suggesting it could lay the foundation for future economic empires.
He said:
“Everyone is going to do business in cyberspace. Bitcoin is a scarce, desirable digital asset. It’s a great idea to exchange a little bit of money or paper for a place where billions of people will stay in 100 years.”
When questioned about Bitcoin’s decentralized ethos, Saylor claimed that Bitcoin’s fundamental value as a real estate asset transcends traditional concerns about government involvement. He compared the acquisition of Bitcoin to the purchase of valuable real estate, suggesting that this lays the foundation for future economic empires.
Discussing the upcoming election, Saylor outlined the competing interests between traditional finance and the fast-growing digital asset economy. He criticized the limitations of the traditional financial system and emphasized the constant availability of Bitcoin as a financial instrument of the 21st century.
According to Saylor:
“Bitcoin is active 100 percent of the time. Why are we stuck with 20th century banks, money markets and capital markets closing us at 4pm on Friday and not opening until 9.30pm on Monday?”
MicroStrategy to continue stacking
Saylor emphasized that MicroStrategy remains committed to acquiring more Bitcoin using a variety of financial strategies. The company plans to sell shares, issue convertible bonds and use operating cash flow to increase Bitcoin ownership per share.
He explained:
“MicroStrategy is a Bitcoin development company. We are an operating company and that means we have a number of advantages over a trust company. We have permanent capital. We can generate cash flows. We have operational flexibility.”
Despite concerns about the performance of MicroStrategy’s core businesses, Saylor described them as stable and a “cash cow,” indicating the company has plenty of room to issue debt and explore other strategic alternatives to support its Bitcoin accumulation strategy.
He added:
“Our shareholders want more Bitcoin per share. They think if we get more Bitcoin per share, that will create shareholder value.”