Michael Saylor is Clearly not Done Buying Bitcoin

Michael Say­lor – the founder and for­mer CEO of MicroS­trat­e­gy – has announced that his com­pa­ny is look­ing to gar­ner as much bit­coin as it can in the com­ing months.

Michael Saylor Still Loves BTC

Say­lor has always been a huge bit­coin bull. He first caught the BTC bug back in August of 2020 and began adding the world’s num­ber one dig­i­tal cur­ren­cy by mar­ket cap to his company’s bal­ance sheet when the cur­ren­cy was trad­ing for around $11,000. From there, it explod­ed and by the time 2021 came to an end, the cur­ren­cy was trad­ing in the high $60,000 range.

At first glance, one could assume that Say­lor knew what he was doing. That he had latched onto the great­est finan­cial dis­cov­ery since gold in Cal­i­for­nia, and he was (cor­rect­ly) putting all he had into it, but it wasn’t long before the bub­ble burst, and bit­coin came crash­ing down like an old building.

Towards the end of 2022, the cur­ren­cy had lost more than 70 per­cent of its val­ue, and Say­lor resigned from his CEO posi­tion with MicroS­trat­e­gy and trans­ferred to the role of exec­u­tive chair­man after all his bit­coin invest­ing deci­sions led the com­pa­ny into a debt hole exceed­ing sev­er­al bil­lion dollars.

Now that bit­coin has regained some of its pre­vi­ous val­ue and is trad­ing near the $30K mark, it seems Say­lor is once again putting his all behind bit­coin. In oth­er words, it doesn’t seem like he’s learned his les­son from the pre­vi­ous year, and he’s going to be tak­ing the same path as before. In a recent inter­view, he stated:

Our goal is to accu­mu­late as much bit­coin as we can on behalf of our shareholders.

As part of the plan to acquire more BTC, his com­pa­ny is going to sell more than $700 mil­lion in com­mon stock. He con­tin­ued with:

We’ve pur­sued a strat­e­gy of lev­er­ing bit­coin invest­ments, so we use cheap cap­i­tal. Our aver­age cost of cap­i­tal is like 1.6 per­cent or some­thing in that range, and the com­bi­na­tion of lever­age, and then offer­ing our share­hold­ers a yield. We don’t charge them a fee to man­age this bit­coin; we aim to write a yield. That’s allowed us to gen­er­ate 254 per­cent per­for­mance. At the same time, bit­coin was up 145 per­cent [since last August].

The Fewer Altcoins, the Better

He expects bit­coin will grow in the com­ing months, and he thinks the ongo­ing attacks from agen­cies like the Secu­ri­ties and Exchange Com­mis­sion (SEC) will ulti­mate­ly lead to the deaths of many pho­ny alt­coins, which he said are only inflat­ing (and inad­ver­tent­ly hurt­ing) the are­na. He commented:

Now, I think that the pub­lic is begin­ning to real­ize that bit­coin is the next bit­coin. The next log­i­cal step is for bit­coin to [grow] ten times from here and then ten times again.