Michael Saylor, the CEO of MicroStrategy, has been a tireless advocate of Bitcoin, and his recent statements have highlighted the crucial importance that this cryptocurrency could have for the American economy.
MicroStrategy co-founder and CEO Saylor recently compared Bitcoin to the iconic Manhattan real estate market, referring to the cryptocurrency as “cyber Manhattan.” Saylor’s ambitious and optimistic view on Bitcoin expresses his belief and confidence in the long-term economic potential of the market-leading cryptocurrency.
According to Saylor, just as Manhattan has been a solid and increasingly valuable investment over the centuries, Bitcoin has the potential to offer exceptional returns and long-term stability that surpasses today's traditional assets.
In the recent interview Speaking to CNBC, Saylor also defended his bullish view on Bitcoin investing, stating that “every day is a good day to buy BTC.” This statement comes at a time when Bitcoin has hit new all-time highs, rekindling interest and discussion about its value as a legitimate investment asset.
Saylor compares Bitcoin to Manhattan's real estate market
Saylor argued that the dynamics of the Manhattan real estate market can parallel the evolution of Bitcoin. In his interview, he said that real estate developers in Manhattan have used the rise in property values to issue more debt and fund new developments.. "Like Manhattan real estate developers, every time property values rise, they issue more debt to develop more properties.", Saylor explained. This approach has been common practice for hundreds of years and he considers this strategy to be an integral part of a sound economy.
The comparison between Bitcoin and Manhattan highlights the growth potential of cryptocurrency and draws a parallel on how investments in tangible and intangible assets can be driven by appreciation in value. Saylor emphasizes that investing in Bitcoin is similar to having bought property in Manhattan centuries ago – even if one pays more than the previous buyer, it is always a good decision to invest in what he considers "the economic capital of the free world."
Using this analogy, the CEO of MicroStrategy proposes that the US government accumulate bitcoins to attract foreign capital, strengthen the dollar and solve structural problems in the country's economy.
Recently, Saylor commented that the United States should sell its gold reserves and buy Bitcoin, a strategy that would not only strengthen the US dollar and reduce the deficit, but also establish the United States as a leader in the 21st century digital economy.
Saylor has emphasized Bitcoin’s resilience and unique value in an increasingly volatile global economic context. According to him, Bitcoin is the only truly uncorrelated asset, resistant to counterparty risk, inflation and physical entropy, and with a potential lifespan of thousands of years.
MicroStrategy and its strategic accumulation of Bitcoin
Since 2020, MicroStrategy has been accumulating Bitcoin as part of its financial strategy. The company has increased its holdings to 439.000 BTC, which is worth approximately $46.000 billion. This strategy has positioned MicroStrategy as one of the largest Bitcoin holders at the corporate level.
MicroStrategy has opted to issue convertible bonds, sell stock, and convert its cash reserves to fund its recurring Bitcoin investments without diluting its equity capital. While its financial approach has been criticized by some analysts as risky, Saylor has demonstrated the sustainability, logic, and effectiveness behind its strategy. Much like in real estate development, where increases in value enable new investments, Saylor argues that the continued growth in Bitcoin’s price justifies aggressive accumulation by his company.
Recently, MicroStrategy was included in the Nasdaq 100 stock index, a move that will further increase the visibility and legitimacy of corporate use of Bitcoin as a strategic asset. As several experts have explained, this inclusion will also allow investors to indirectly access Bitcoin through funds that track the index, such as the Invesco QQQ Trust, which could attract even more capital to the market-leading cryptocurrency.
