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Michael Saylor will never sell MicroStrategy’s bitcoin
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Even by Bitcoin bull standards, Michael Saylor stands out.
MicroStrategy’s executive chairman spends his days posting quasi-mystical Bitcoin memes and prophet-like pronouncements (see his pinned post on X). His company now holds 205,000 bitcoins (about $14.5 billion at present) and he led MicroStrategy’s transition from a modest enterprise software company to a Bitcoin proxy that sells software – and acts also as a Bitcoin financing vehicle.
To this end, MicroStrategy just announced a convertible debt offering to finance his latest purchase of Bitcoin.
Saylor touts the value of bitcoin as “digital property” over the more common designation “digital currency” and considers it an excellent store of value – the “ultimate property,” in fact, as he told Yahoo Finance in a video interview yesterday.
Granted, it now looks like a much better store of value, near record highs, than during the last crypto winter, but Saylor has remained steadfast throughout its descent and rise.
And it seems he never intends to sell.
“We believe bitcoin is the highest form of ownership, the highest ownership in the world, and it’s the best investment asset,” he said. “So the end goal is to acquire more bitcoins. Whoever gets the most bitcoins wins. There is no other endgame.
In other words, he said: “We believe the best use of bitcoin is to buy bitcoin and hold it. »
To be clear, this is unusual. Most companies that hold other assets on their balance sheet – from real estate to stocks – do so in an effort to earn a return on their investment. Saylor likens bitcoin to an eternal investment; he says an analogy is New York real estate. Another Bitcoin bull, Scott Melker, recently told Yahoo Finance he plans to keep the bitcoin until he dies so he can pass it on to his children.
Saylor’s philosophy appears to be paying off. The market is pricing MicroStrategy shares at a 90% premium to the price of bitcoin itself, according to TD Cowen analyst Lance Vitanza, who just set a $1,560 price target for the shares in a new note.
This is not to say that it makes sense for most bitcoin buyers to imitate it. Holding an asset forever without ever selling it may make the company rich on paper, but the rest of us have bills to pay. Unlike Bitcoin, real estate in New York will at least offer you rent – or housing.
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