Bitcoin Evangelist Saylor Takes Dig at WSJ
In a defiant move, Michael Saylor, the unwavering Bitcoin enthusiast and Executive Chairman of MicroStrategy Inc., took to X (formerly known as Twitter) to showcase his continued support for Bitcoin.
Saylor’s post, which included a screenshot of a 2021 article detailing his company’s substantial financial losses due to their Bitcoin investment, was accompanied by a simple yet bold declaration: “Still Betting on #Bitcoin.”
Risky bet amid skepticism
MicroStrategy’s foray into Bitcoin began in August 2020, when the company announced its decision to convert half of its corporate reserves into Bitcoin, leading to a total investment exceeding $3.45 billion raised through debt, loans and equity. This strategic pivot from traditional cash reserves to cryptocurrency was hailed as visionary by some and criticized by others as overly risky.
The company’s subsequent financial performance, marked by consistent quarterly losses and a significant drop in stock value, fueled debates about the prudence of such heavy reliance on Bitcoin.
Critics pointed out the lack of hedging strategies and the company’s limited options for further investment as major concerns.
Bitcoin’s resurgence
Despite earlier setbacks, MicroStrategy’s Bitcoin gamble appears to be paying off, with the cryptocurrency’s value soaring above $52,000 in February.
This resurgence has propelled the value of MicroStrategy’s Bitcoin holdings to over $10 billion, reflecting a significant turnaround from previous losses. The company now owns approximately 190,000 Bitcoins, positioning it as a major player in the cryptocurrency space.
This development comes amid a broader acceptance of Bitcoin as a legitimate asset class, driven in part by the introduction of Bitcoin ETFs and a growing recognition of its potential as a hedge against inflation.
Saylor’s unwavering commitment to Bitcoin, even in the face of past criticism, underscores his belief in its long-term value and viability as an investment.
