- Michael Saylor, the CEO of macro Bitcoin holder MicroStrategy, says the current dip in Bitcoin presents an opportunity to buy.
- He reiterates that his firm is nowhere near a margin call, and BTC’s store-of-value potential will have its prices hike in the long term.
Bitcoin (BTC) has dropped about 70 percent from its November all-time high, dragging the rest of the markets with it. Markets responded positively to yesterday’s interest hike by the Fed, but the Fear & Greed Index still stands at Extreme Fear. Despite all that, MicroStrategy CEO Michael Saylor says Bitcoin remains the best store of value in the world, adding:
I can’t come up with a better idea.
“Nobody lost money invested in Bitcoin for four years”
In a Wednesday interview with CNBC’s Squawk On The Street, Saylor notes that Bitcoin’s four-year simple moving average (SMA) is $21,685.
“Nobody’s ever lost money investing in Bitcoin for four years,” he asserts. He also explains that BTC is risk-on in the short-term, but risk-off in the long-term. With current prices around $21K ($21,845 at writing time), Saylor says the digital asset is definitely “on sale.”
MicroStrategy holds 129,218 BTC, which it purchased at an average of $30,700 (totals roughly $4 billion). Currently, this makes it the largest publicly-traded company to own such a heap of cryptocurrency.
As Bitcoin neared the $20K mark, concerns rose over liquidations and bankruptcy of crypto-based or crypto-invested firms. DeFi firm Celsius and hedge fund Three Arrows are among those on the brink of such happenings.
Saylor however, says the business intelligence firm has no risk of a margin call on its overcollateralized Bitcoin loan. He reiterated this in yesterday’s interview. MicroStrategy’s loans were either taken before interest rate hikes or are due in several years, he notes. In every aspect, Saylor shows that MicroStrategy is immune to the crypto crash. Whoever says otherwise, he labels as a troll.
All other assets can be reproduced, Bitcoin is an exception
Bitcoin, he says, is scarce, backed by the world’s most secure network, and beyond nation-state or corporate attacks. Comparatively, gold, silver, oil, Acorn, and real estate can be reproduced. Here, he notes the news that Uganda recently discovered 31 million tonnes of gold ore. This, he says, will double the supply of all gold mined in man’s history.
Differently, BTC is bound to grow in value since many want to put their money in something that does not lose value. He adds that its investment in the digital asset is less than 1 percent of the total. There are therefore many others who see the long-term potential BTC holds and are putting their money in it. He concludes with the following parting shot:
Nothing else in the world meets that need.
Meanwhile, regulators continue to make attempts at regulating the crypto industry. More recently, the Lummis-Gillibrand crypto regulation bill emerged, a proposal that Saylor and other pro-crypto politicians contributed to.