MicroStrategy’s Bitcoin Investment: Why Selling Isn’t in the Cards

In a recent Bloomberg TV interview, Michael Saylor, the Executive Chairman of MicroStrategy, expressed his unwavering stance on not selling the company’s bitcoin holdings. Despite the substantial profits MicroStrategy has garnered from its bitcoin investments, Saylor sees no merit in divesting from what he considers the leading digital asset. Since August 2020, MicroStrategy has been actively increasing its bitcoin portfolio, now owning 190,000 bitcoins acquired at an average price of $31,224 each. With the current market price hovering around $52,000 per bitcoin, the company’s investment is valued at approximately $10 billion, netting a $4 billion profit.

Bitcoin is the exit strategy.

Saylor’s confidence in bitcoin stems from his belief in its superiority over traditional asset classes such as gold, real estate, and the S&P index. He argues that bitcoin’s technical advantages make it a more attractive investment. Furthermore, Saylor highlighted the role of spot ETFs in drawing institutional capital into the bitcoin ecosystem, thus supporting the digital transformation of capital. This influx of funds from traditional to digital assets is a trend Saylor believes will continue, reinforcing his decision to hold onto MicroStrategy’s bitcoin assets. “We believe capital is going to keep flowing from those asset classes into bitcoin because bitcoin is technically superior to those asset classes and that being the case, there’s just no reason to sell the winner and to buy the losers,” he noted.

“Bitcoin is the exit strategy,” Saylor remarked, dismissing the idea of selling the profitable asset to invest in lesser-performing ones.