Michael Saylor, the founder and chairman of the business intelligence firm MicroStrategy Incorporated, has been one of the most vocal and influential advocates of Bitcoin in the corporate world. Since August 2020, he has led his company to invest billions of dollars in the leading cryptocurrency, making it the largest publicly-traded Bitcoin holder. But how does he justify his bold and unconventional move? He recently shared some evidence that his Bitcoin strategy is a good play compared to other financial assets.
Bitcoin Outperforms Other Assets
In a tweet above, Saylor shared a chart that compares the performance of Bitcoin with some of the major financial assets since August 2020, when MicroStrategy announced its first Bitcoin purchase. The chart shows that Bitcoin has soared by 147% in that period, dwarfing its closest competitor, the S&P 500, which tracks the performance of 500 stocks trading on U.S. stock exchanges. The S&P 500 has managed 26% growth since August 2020 compared to Bitcoin’s 147%. The tech stock-heavy Nasdaq Composite comes next in line, boasting of 18% growth in the same period.
Bitcoin is often touted as a viable hedge against inflation and currency devaluation, and it is often labeled as digital gold, accounting for one of the reasons why MicroStrategy is all out on it. However, physical gold has nosedived by 3% compared to Bitcoin’s performance, while silver and bonds have slumped by 19% and 24%, respectively. Judging by the outlook of the comparative alternatives, Saylor declared his verdict, noting that “Bitcoin is stronger.”
MicroStrategy Continues to Accumulate Bitcoin
MicroStrategy remains the most consistent and aggressive Wall Street firm with a bullish position on Bitcoin. The firm has not relented on its Bitcoin acquisition since August 2020, and recently, the company snapped up another 5,445 BTC units. This recent acquisition was worth $147.3 million, and it takes the company’s total holdings to 158,245 BTC acquired for approximately $4.68 billion.
While MicroStrategy’s overall holdings might not be profitable at the moment due to the recent market correction, Saylor believes that Bitcoin is a long-term investment that will eventually pay off. He has repeatedly stated that he sees Bitcoin as a store of value that will appreciate over time and become a “stabilizing influence” for the entire global financial system. He has also predicted that Bitcoin’s market value will reach $100 trillion one day, making it the dominant monetary network in the world.
The Bottom Line