Michael Saylor goes all-in on Bitcoin, says there is ‘no reason to sell the winner’

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MicroStrategy chief Michael Saylor recently claimed in an interview with Bloomberg that the business intelligence firm will be buying Bitcoin “forever,” given how they see it as “the exit strategy.”

According to Saylor, Bitcoin is “technically superior” to gold, the S&P 500, and real estate. For context, these assets have larger market capitalizations than Bitcoin, which currently has just over $1 trillion.

MicroStrategy was the first publicly traded company to buy Bitcoin when it began stocking up on the alpha cryptocurrency back in 2020. The firm’s most recent purchase of Bitcoin was completed earlier this month on February 6, adding 850 Bitcoin worth $37.2 million.

Saylor sees a macro-level movement of capital from the traditional asset classes to Bitcoin. According to Saylor, this capital is “going to keep flowing” into Bitcoin. 

“Bitcoin is technically superior to those asset classes. And that being the case, there’s just no reason to sell the winner to buy the losers,” Saylor claimed.

Saylor argues that there is an increased demand for Bitcoin, largely influenced by investor appetite for ETF products, which were approved in January by the Securities and Exchange Commission. Saylor claims that the spot Bitcoin ETFs have been “far in excess of the supply from miners,” adding that the supply sometimes goes up by “ten times as much.”

The MicroStrategy chief said that spots ETFs have opened a “gateway for institutional capital” to flow into Bitcoin. Saylor opines that this trend facilitates the “digital transformation of capital,” which transfers value from an “analog ecosystem” into a digital one.

There is a critical point here: it could get harder for MicroStrategy to buy more Bitcoin as the demand goes up, given the currently bullish market trend. Responding to this concern, Saylor said that his firm implements a leveraged strategy for its investment operations.

MicroStrategy currently has 190,000 BTC bought at an average price of $31,200 for a total cost of $5.93 billion.

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