US-based software company MicroStrategy announced on September 25, 2023 that it acquired another 5,445 BTC with an average value of 147.3 million USD. MicroStrategy currently holds 158,245 BTC. MicroStrategy Co-Founder Michael Saylor has repeatedly expressed his intention to continue adding more Bitcoin to its balance sheet. We have compiled the behind-the-scenes of Saylor and MicroStrategy's confidence in Bitcoin.
Operating since 1989, MicroStrategy Incorporated is an American company that provides business intelligence, mobile software and cloud-based services. Founded by Michael J. Saylor, Sanju Bansal and Thomas Spahr, the company aims to make business decisions and develop mobile applications by analyzing internal and external data. MicroStrategy competes with major companies such as SAP, IBM and Oracle and specializes in business intelligence and mobile application development.
Who is Michael Saylor?
Born in 1965 in Lincolnwood, Ohio, American businessman Michael Saylor studied computer science at the Massachusetts Institute of Technology (MIT) and graduated in 1987. Saylor entered the business world and founded the software company MicroStrategy. Saylor, who has been at the helm of MicroStrategy for nearly 33 years, announced that he will step down as CEO in the third quarter of 2022. However, he continued in his role as Chairman of the Board of Directors.
Saylor is also known for his interest in Bitcoin and other cryptocurrencies. In 2020, he led his company to invest $425 million USD in Bitcoin, bringing the amount to billions of dollars. Saylor has become one of Bitcoin's biggest advocates. Saylor is also an author and speaker. Indeed, he gives lectures on topics such as business management, technology, cryptocurrencies and digital asset management. He is also the author of Saylor's book "The Mobile Wave: How Mobile Intelligence Will Change Everything".
Why Saylor Stepped Down as CEO of MicroStrategy Last Year
In August 2022, Saylor stepped down as CEO of MicroStrategy to become the company's Chairman of the Board. It was learned that the new CEO of the company will be Phong Le. Saylor stated in a statement on the subject that he thinks the separation of the Chairman and CEO positions will enable them to better follow their two corporate strategies of buying and holding Bitcoin and growing the enterprise analytics software business, "As Chairman of the Board, I will be able to focus more on our Bitcoin acquisition strategy and our initiatives to support Bitcoin." Saylor stated that Phong Le, the new CEO of the company, will have the authority to manage overall corporate operations.
When Did MicroStrategy's Relationship with Bitcoin Begin?
When the dates showed August 11, 2020, MicroStrategy announced that it purchased 21,254 Bitcoins for approximately 250 million USD. Michael Saylor, then CEO of MicroStrategy, described Bitcoin as 'digital gold' in a press release. Saylor summarized Bitcoin as "Bitcoin is digital gold. It is more robust, powerful, fast and smart than any previous currency. Our investment in Bitcoin is part of our new capital allocation strategy aimed at maximizing long-term value for our shareholders. This investment reflects our belief that Bitcoin, the world's most widely accepted cryptocurrency, is a reliable store of value and an attractive investment asset with the potential for longer-term appreciation than holding cash. Since its emergence over a decade ago, Bitcoin has emerged as an important addition to the global financial system with beneficial features for both individuals and institutions. MicroStrategy has recognized Bitcoin as a legitimate investment vehicle that can be superior to cash and accordingly has made Bitcoin the main asset of its reserve strategy..." With this move on August 11, 2020, MicroStrategy became the first public company to buy BTC.
Saylor later explained in his statements to various institutions that the decision to add Bitcoin to their balance sheet as a reserve currency was taken because it provides better protection against inflation and has a higher return on investment compared to other assets.
"Don't Sell Your Bitcoins"
In his speech at the Bitcoin 2022 conference, Saylor said, "Bitcoin should take a victory lap... While many people are worried about regulation, I'm not. I don't think there will be any consequences other than those that are to Bitcoin's advantage. Bitcoin is an ethical safe haven for any public official... We have close to $6 billion worth of Bitcoin. If we bought gold, I would have $250 million worth of gold. Don't sell your Bitcoins..."
What Does Saylor Think About CBDCs?
In a post on his X account, Michael Saylor argued that CBDCs are unstable and "certain to fail". According to the article Saylor shared, there are three reasons why CBDCs will fail. First, in a CBDC system, "managers" can abuse their power and print more money. "Players" can also find cheap ways to increase the money supply. The countries, regions or companies in which CBDC systems are located, or "arenas" according to the author, may cease to exist. In the case of Bitcoin, thanks to decentralization, there is no such concern. The Bitcoin maximalist believes that Bitcoin is superior to CBDCs due to its rarity, the time spent on production and the energy consumed. Saylor calls Bitcoin "the best kind of money".
Saylor Integrates Corporate E-Mail Address with Bitcoin Lightning
Michael Saylor turned his corporate email address into a lightning address. Saylor's integration of the Lightning Network into his corporate email structure means that anyone can send BTC to the manager using his company email address as an identifier. As a matter of fact, Michael Saylor fans transferred satoshi to test the integration. The lightning address protocol also allows users to replace a payment request with an identifier such as an email address. This makes sending and receiving payments easier than using crypto wallet addresses or QR codes.
Has MicroStrategy Ever Sold Bitcoin?
In December 2022, MicroStrategy sold 704 Bitcoins for about $11.8 million for "tax reasons" after buying 2,395 Bitcoins for about $42.8 million. The company first bought at an average price of 17,871 USD. It then sold at an average price of $16,776, which caused the company to record a loss. It can be said that MicroStrategy took this loss to pay less tax. After all these transactions, MicroStrategy made a loss-making purchase of 810 Bitcoins for 13.6 million USD at an average price of 16,845 USD.