Michael Saylor wants to acquire 'as much bitcoin as we can' with MicroStrategy poised to go on a buying spree

MicroStrategy CEO Michael Saylor
MicroStrategy CEO Michael Saylor
  • MicroStrategy is looking to buy more bitcoin, potentially using proceeds from selling equity.
  • "Our goal is to accumulate as much Bitcoin as we can on behalf of our shareholders," Michael Saylor told Bloomberg TV.
  • He previously forecast that bitcoin's market dominance will double amid the crypto crackdown.

MicroStrategy founder Michael Saylor said the company may be looking to cash in shares to add to the firm's already huge trove of bitcoin.

The company has used proceeds from stock and bond sales to buy more bitcoin in the past, and a Tuesday federal filing shows that MicroStrategy could sell $750 million of class A common stock, to be used for either buying more bitcoin or other general corporate purposes.

"Our goal is to accumulate as much Bitcoin as we can on behalf of our shareholders," he told Bloomberg TV on Wednesday. 

As of July 31st, the software company held 152,800 bitcoins, worth of about $4.5 billion. That's after Saylor had added to the firm's holdings of the token that month, scooping up 12,333 bitcoins

So far 2023, the world's largest cryptocurrency by market value has rallied 75%. Its impressive performance helped MicroStrategy post its first profitable quarter in two years. MicroStrategy stock, meanwhile, has climbed 189.45% in the same period. 

"We've pursued a strategy of levered bitcoin investments. So we use cheap capital — our average cost of capital is like 1.6%, or something in that range —  and the combination of leverage, and then offering our shareholders a yield," he said. 

"We don't charge them a fee to manage this bitcoin, we actually aim to write a yield; that's allowed us to actually generate 254% performance in the same time the bitcoin was up 145% [since last August]." 

Saylor is a long-time bitcoin bull. In June, he said he expects bitcoin's market dominance to only grow, stating that the ongoing regulatory crackdown would eliminate a number of competing cryptocurrencies. 

"Now I think that the public is beginning to realize that bitcoin is the next bitcoin," Saylor said. "The next logical step is for bitcoin to 10x from here and then 10x again."

As of Thursday morning, bitcoin was trading around $29,162. 

Read the original article on Business Insider


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Michael Saylor wants to acquire 'as much bitcoin as we can' with MicroStrategy poised to go on a buying spree Michael Saylor wants to acquire 'as much bitcoin as we can' with MicroStrategy poised to go on a buying spree Reviewed by mimisabreena on Friday, August 04, 2023 Rating: 5

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