THE CROX. Our free 5 minute, Daily Newsletter - The Michael Saylor's Bitcoin Strategy That Every Company Should Replicate

The beginning of Michael Saylor’s transformation into a corporate Bitcoin evangelist was rather ordinary. He is the CEO of MicroStrategy Inc., a publicly listed enterprise software company, and with $482 million in 2020 revenues and business steady but costs down due to COVID last year, cash reserves started building up. Saylor shares the deep discomfort of many in the Bitcoin community over central banks bolstering economies with cheap money; according to his estimates, the expansion of the money supply devalues the dollar by 15% annually. Cash is referred to as “junk” by him. In contrast, Bitcoin is “digital treasure.” Saylor made the unusual decision to convert a portion of his company’s treasury reserves into bitcoin in August, spending $250 million to purchase 21,454 bitcoins. With the purchase of 19,452 bitcoins for $1.026 billion in February, MicroStrategy increased its overall holdings of bitcoins to 90,531 bitcoins. $5 billion is the current value. In response, the value of the company’s shares has increased dramatically; on March 16, it closed at $724 per share, up from $107 a year earlier.

Assets are currently being transformed most quickly through digital means:

Two areas of digital change have accelerated during the past 12 months. With decentralised and exclusively digital stakeholder engagements, the first focus areas were in the lines of business, such as sales, services, and marketing. The speed and effectiveness of how businesses promote, sell, and provide customer support increased significantly. The digital transformation of assets constituted the second area. What Bitcoin is all about is this. Saylor brought up the rapid digitalization of books, music, films, and images as well as their alteration. Gold, silver, bonds, equities, and money are now undergoing revolution. Every business and individual on the planet will be impacted by this significant transformation. Additionally, the digitalization of assets is progressing more quickly than any other transition.

For institutional investors, Bitcoin is the most reliable treasury asset:

Saylor asserts that if you inquired about a company’s Bitcoin strategy in February of 2020, you would probably be met with responses like “What is Bitcoin? ” or “Why do I need a Bitcoin strategy? If you are purchasing low yielding bonds, Saylor contends that all existing treasury techniques are invalid. The money supply is increasing but the buying power is sharply declining. The concept behind Bitcoin is that you identify a decrease in purchasing power and then use a new treasury approach. The strongest treasury asset that MicroStrategy could discover, according to the software, was Bitcoin. Saylor hosted a conference titled "Bitcoin for Corporations” on February 3–4, 2021. During the meeting, additional business leaders were to be persuaded of the advantages of Bitcoin for their portfolios. There were executives from more than 1,400 companies present. News sources claim that SpaceX executives were among the visitors. Elon Musk’s electric car company, Tesla, declared it had bought $1.5 billion worth of Bitcoin on Monday, February 8, 2021. Saylor highlighted that over the past ten years, the value of Bitcoin has climbed by 200% annually, and by 800% in 2020. transforming a declining asset into a trillion-dollar asset that is increasing in value, creating a positive feedback loop for your stockholders. Saylor said that his lone point of contention with Musk was that he had suggested Tesla purchase $10 billion worth of Bitcoin.

That’s a wrap for today, ladies & gents. Stay tuned & see ya tomorrow!

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