“Bitcoin is 1 million times better than gold”, the public company CEO Saylor’s crazy Bitcoin journey
Nearly 40,000 BTC were bought in two months, and MicroStrategy took the lead in the purchase of Bitcoin by listed companies.
MicroStrategy CEO Michael Saylor’s recent remarks about BTC are even more surprising, such as “Bitcoin is 19.3 trillion times as secure as 10 years ago”, “If the investment period is a century, investing in Bitcoin will It worked” and so on. In addition, Michael Thaler personally bought a large amount of BTC, which caused concern.
At the same time, the world’s largest sovereign wealth fund, the Norwegian Government Pension Fund, has more than $1 trillion in assets, including 1.4% of all global stocks. Such a fund giant also indirectly holds BTC through its holding of MicroStrategy stock.
So, what kind of listed company is MicroStrategy? How should we view the large-scale purchase of BTC by institutions? What impact will MicroStrategy’s buying behavior have on the market?
1. Michael Thaler, the new Bitcoin idealist
“If the investment period is a century, investing in Bitcoin will work.”
This is the view of MicroStrategy CEO Michael Seiler on Twitter. He believes that if your investment period is one year, you can invest in anything. If your investment horizon is a century, one thing may work, and that is to invest in Bitcoin.
The implication is that if you want to hold a target for 100 years, Bitcoin is the best choice.
In addition, Michael Thaler also believes that it is not enough to invest only 1% of the funds in Bitcoin.
On October 24, Michael Seiler stated in an interview that when investing in Bitcoin, people always worry about not investing enough. He said that if you “really get” Bitcoin, just 1% of your portfolio is not enough.
The need to allocate 1% of assets to Bitcoin is the early view of the legendary Wall Street investor Bill Miller. The purpose of this is to fight inflation. Miller believes that “in order to prevent the super inflation in the 1870s, it is best to allocate 1%-2% of total assets to Bitcoin, which will be a very wise and reasonable choice.”
It seems that the views of Bill Miller will be refreshed by Michael Seiler.
In addition, Michael Thaler has even more shocking remarks about Bitcoin.
When comparing Bitcoin to gold, Michael Seiler stated that Bitcoin is 1 million times better than gold, and nothing can match it. When talking about the impact of Bitcoin on the global financial situation, Michael Seller believes that Bitcoin is a solution to a problem worth $250 trillion.
He even believes that Bitcoin is the “global monetary system for unified energy valuation” proposed by Nobel Prize winner Buckminster Fuller in 1981.
On November 2nd, Michael Thaler issued a tweet saying, “In 1981, Buckminster Fuller predicted that a global monetary system based on a unified energy valuation would be established to solve our problems at the time. We are now facing the problem of empowering economic power by legal currency. Bitcoin is the first real currency network based on encrypted energy.”
As the CEO of a listed company in the United States, supporting Bitcoin so strongly is like a new Bitcoin idealist.
Of course, Michael Thaler is not just a slapstick, but he personally bought bitcoin by a large margin and created a bitcoin full node.
2. Buy Bitcoin and create a Bitcoin full node
Michael Thaler is the co-founder and CEO of MicroStrategy, which provides smart business, terminal software and cloud services. Saylor published the book “Mobile Wave: How Mobile Intelligence Will Change Everything” in 2012, and is also the sole trustee of Saylor Academy, which provides free online education.
In July 2020, during MicroStrategy’s quarterly earnings conference call, Michael Seiler announced his intention to let MicroStrategy explore the purchase of bitcoin, gold or other alternative assets instead of holding cash.
In August, MicroStrategy used its cash reserves of $250 million to purchase 21,454 bitcoins. In September, Thaler announced that MicroStrategy had purchased another $175 million worth of Bitcoin. So far, MicroStrategy holds more than 40,000 bitcoins. And all this happened in just two months.
In addition to vigorously supporting MicroStrategy to buy bitcoins, Michael Thaler is also personally buying large amounts of bitcoins in his personal capacity.
On October 28, Michael Seiler stated on Twitter that he personally held 17,732 BTC, with an average purchase price of approximately US$9882. In other words, the purchase cost only 177 million US dollars at the time. Now, this bitcoin is worth 242 million US dollars, and Michael Thaler made a net profit of 66 million US dollars in a few months.
In addition to investing in Bitcoin, Michael Seiler also independently runs a Bitcoin full node. On October 30th, he said on Twitter that MicroStrategy has been running a full node of Bitcoin Core 0.20.1 for more than a month. We are very happy to contribute to the development of the Bitcoin network.
As for why Michael Thaler and his company bought Bitcoin so generously, Michael Thaler explained as a hedge against the negative impact of currency expansion.
According to Decrypt, in October, MicroStrategy CEO Michael Thaler explained the company’s public purchase of Bitcoin. Thaler believes that most non-bitcoin assets are negatively affected by expansionary monetary policy. Bitcoin’s market value is only $250 billion, but it is a solution to the problem worth $250 trillion.
Thaler believes that in an environment that expands the money supply, the purchasing power of all stocks and all bonds per unit of currency is declining, and the actual value of these assets will decrease. The solution is Bitcoin, which has a fixed supply, and Will not cause inflation.
So, what impact did Michael Saylor have when he bought BTC so strongly?
3. MicroStrategy’s investment is a win-win strategy
“The company’s purchase of 38,023 bitcoins in the third quarter increased the company’s market visibility, and its revenue increased by 6.4% year-on-year”
On October 28th, MicroStrategy President Phong Li said that the company made a profit of $19.8 million, or $2.06 per share, which was higher than the $11.6 million and $1.13 a year ago.
Li Fang also stated that the company’s Bitcoin investment has increased its visibility in the wider market and has seen significant and unexpected gains, which has benefited its overall reputation and increased its awareness among potential customers.
Of course, this has also increased the influence and popularity of Bitcoin, and is closely linked to the world’s largest sovereign wealth fund.
In September of this year, the Norwegian government pension fund was considered the world’s largest sovereign wealth fund, with more than $1 trillion in assets. The company invested in MicroStrategy to obtain 1.51% of the shares, and indirectly held 577.6 BTC.
Therefore, this acquisition also allows every Norwegian citizen to indirectly own at least $1.72 in cryptocurrency. But it also made its citizens endure the impact of the cryptocurrency market.
Therefore, MicroStrategy’s investment in Bitcoin is a win-win game.
Someone may ask, won’t the tens of thousands of bitcoins cause market chaos? Michael Seller also gave his own explanation.
In September this year, while participating in a podcast by Morgan Creek Digital co-founder Anthony Pompliano, Michael Seller stated that due to financial security issues, he was unable to provide “every detail” about the purchase process.
Nevertheless, he shared some insights on what other company owners should do if they want to buy a large amount of Bitcoin: “If you are in my position, you may need to investigate a series of institutional-level exchanges. You need to research And look for institutional-level custodians. Yes, you need to understand all security issues, all technical issues, etc. You will consider the team you want to form and establish a relationship with them.”
In addition, thousands of small transactions need to be completed “one minute by one minute” in “many, many” days. Michael Thaler pointed out that their buying did not shake the market at all because they have an “elite team.”
