On Thursday, July 29, business intelligence firm MicroStrategy revealed its second quarter results for 2021 declaring over $600 million with impairment losses with its bitcoin holdings. But company CEO and Bitcoin evangelist Michael Saylor continues to remain ultra-bullish on the future of Bitcoin.
Saylor noted that buying Bitcoin right now is similar to buying Bitcoin in its early-days, during an interview with CNBC’s Squawk Box. Strongly defending the massive debt of over $2 billion in Bitcoin, the CEO said:
“We’ve got $2.2 billion of debt and we pay about 1.5% interest, and we have a very long time horizon. Our point of view is being a leveraged, bitcoin-long company is a good thing for our shareholders.”
The company has been aggressively raising debt to buy Bitcoin by converting its security notes. However, it has received a lot of flak from industry players for pouring such large sums of money in a highly volatile asset class. Responding to all the criticism and the current interest, Saylor said:
“If you borrow billions of dollars at 1% interest and invest it in the next Big Tech digital network that you thought was going to be the dominant Amazon or [Alphabet’s]gugg Google or Facebook of money, why wouldn’t you?. I mean, if I could borrow $1 billion and buy Facebook a decade ago for 1% interest, I think I would’ve done quite well.”
$1.4 Billion Profits In Bitcoin On Paper
MicroStrategy has been aggressively buying Bitcoins over the last year year and holds more than 100K BTC on its balance sheet. The company has more than $4 billion worth of Bitcoins with $1.4 billion in profits on paper.
Speaking to Bloomberg TV, Saylor said that they are holding their Bitcoins for long-term and won’t sell anytime soon. He further added that they have a 10-year view with their Bitcoin investments. Saylor said:
“Our strategy is long #bitcoin, long term, leveraged intelligently. It is only a matter of time before billions of people plug their mobile phones into bitcoin and we want to be there first. The future of big tech is digital property”.
Saylor believes that one day billions of people will hold the digital property (Bitcoin) on their mobile phones. Thus, they wwant to be the first in the game.