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MicroStrategy’s CEO, Michael Saylor, has come out to disclose that while he is focused on Bitcoin (BTC/USD), he believes the future of multiple cryptocurrencies is bright. He shared these sentiments during an interview on June 15, saying that different cryptocurrencies have varying use cases. However, he noted that identifying these use cases might prove a difficult task for newbies in the crypto market.
In the interview, Saylor said he considers BTC a digital property and a store of value. On the other hand, he believes that ETH and the Ethereum blockchain seek to revolutionize finance. Saylor said BTC has high integrity and durability and is thus made to last forever. He likened investing in BTC to putting up buildings on a solid footing of granite. As for ETH, he said the project seeks to dematerialize exchanges and the financial structure.
With these differences in mind, Saylor said that once the market begins understanding the different roles of every cryptocurrency, everyone will find a place they are comfortable with. Explaining why he is so bullish on BTC, Saylor said he has the backing of the firm’s investors, who believe holding cash on the company’s balance sheet is a liability.
He added that by adding BTC to MicroStrategy’s balance sheet, the brand has grown by a factor of 100. Apart from this, he said that the company’s software had its best quarter in history because the BTC business is driving shareholder returns.
Working to bolster MicroStrategy’s BTC holdings
Reportedly, MicroStrategy has 91,326 BTC at the moment. However, despite this vast wealth, the company has not yet had its fill of the leading cryptocurrency by capitalization. MicroStrategy recently organized the sale of $500 million (£354.55 million) worth of senior banknotes to purchase more BTC. On Monday, the firm unveiled that it had completed this offering successfully and that it plans to invest as much as $488 million (£346.04 million) in BTC.
Apart from this, MicroStrategy disclosed that it seeks to sell up to $1 billion (£0.71 billion) worth of its Class A Common stock (MSTR) over time to purchase more BTC.
OK, I've said that $MSTR holding all of its cash in Bitcoin is a breach of fiduciary duty. Now it's borrowing $400 million to buy more Bitcoin – after taking a $284.5 million loss this quarter because of Bitcoin. I'm stunned by this level of irresponsibility.
— Marc Lichtenfeld (@stocksnboxing) June 7, 2021
MicroStrategy’s decision to continue investing in BTC comes even as it continues coming under fire for holding all its cash in BTC even after BTC’s sharp plunge from its ATH of $64,863.10 (£45,984.37). While the company said, it might suffer an impairment of at least $284.50 million (£201.15 million) in Q2, its decision to make BTC the second part of its business has not changed.
The post Michael Saylor is BTC-centric but says other cryptos can thrive as well appeared first on Invezz.
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