It is that time of the year when the market is divided between optimism and downbeat. There is panic on the one side of the cryptocurrency market with traders wanting to save their profits. While the other side had people ‘buying the dip’, hoping for a better future. Microstrategy and its CEO belonged to the latter. The value of Bitcoin, the largest crypto took a 40% tumble in value but Michaled Saylor is determined and says he’ll never back down from betting on it.
As per Saylor’s recent interaction with a media publication, the price correction or the so-called crypto winter did not make him nervous about his holdings. Rather, he noted they are a source of “great comfort,” considering the rising inflation.
Saylor stated,
“The best defense against inflation is a Bitcoin standard. So I don’t really think we could do anything better to position our company in an inflationary environment than to convert our balance sheet to Bitcoin.”
As per filings, Microstrategy held 124,391 Bitcoins through the end of December, but as price slipped from $69,000 to almost under $40,000, it remained in black due to early acquisition. Saylor’s large purchases were at an average price of $46,686 and $46,880.
So will we see the company sell a few Bitcoins to recover from losses? Saylor says a strict no. Saylor stated,
“Never. No. We’re not sellers. We’re only acquiring and holding Bitcoin, right? That’s our strategy.”
Microstrategy shares have been underperforming Bitcoin during its selloff as risk appetite reduces. However, Saylor was adamant about adopting a Bitcoin strategy as an alternative to stock buybacks and acquisitions in the face of slowing cash flow growth relative to the U.S. money supply.
Saylor added,
“I had a sense of the consequences if we did nothing, because I had seen the demise of 99% of my competitors, and I could see where we were headed if we stuck with the status quo. We would have to either adopt a Bitcoin strategy or sell the company. And we elected to pursue Bitcoin.”
Meanwhile, given the current state of the Bitcoin market, Saylor thought of its as a great entry point for institutional investors. He opined that the market was consolidating at the current level which might be the case as Bitcoin remained above $41,000 and was trading at $42,093, at the time of press.