Michael Saylor: MicroStrategy Beats Every Company in S&P 500 Using Bitcoin Strategy

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As an analyst with years of experience under my belt, I must say that Michael Saylor’s insights into Bitcoin and MicroStrategy are nothing short of captivating. His approach to integrating Bitcoin into the company’s strategy has proven to be a game-changer, setting them apart from other giants in the S&P 500 index.

Michael Saylor, a key figure as both co-founder and executive chair of the prominent MicroStrategy software corporation, recently stopped by at CNBC’s studio to discuss how Bitcoin has propelled his company towards significant achievements and placed it ahead of other businesses within the S&P 500 index.

He shared his take on several big Bitcoin-related questions with the CNBC Squawk Box hosts.

This morning, it was a pleasure for me to engage in a conversation about Bitcoin and intelligent, swift, valuable currency with Joe, Becky, and Andrew.

— Michael Saylor⚡️ (@saylor) September 9, 2024

MicroStrategy beats all other companies in S&P with Bitcoin

To start with, I’d like to bring your attention to MicroStrategy’s significant investment in Bitcoin. Since August 2020, they have acquired a staggering $8.3 billion worth of this digital asset. Over the same period, Bitcoin has shown an impressive yearly growth rate of approximately 44%.

Beyond this, it’s worth noting that since MicroStrategy adopted Bitcoin, its stock price has skyrocketed by an impressive 825%. At present, it stands as the top performer among stocks in the S&P index, with Nvidia trailing closely with a growth of 821%. With such achievements under its belt, Michael Saylor proudly declared that MicroStrategy outperforms every company in the S&P 500 index by employing its Bitcoin-centric approach.

Here’s what Saylor’s company does, apart from buying Bitcoin

In reply to a question from Joe Kernen as to whether MicroStrategy is doing anything else apart from playing out its BTC strategy, Saylor said that the company continues to run its software business.

Essentially, Saylor explained that this primarily serves as a revenue stream for them. The main focus of the company has been to amass more Bitcoin, with the opportunity for investors to participate by purchasing convertible bonds issued by MicroStrategy. In simpler terms, the CEO clarified that their major activity is essentially treating Bitcoin like a financial asset, which they are using as their core business at present.

The company, he said, is selling convertible bonds to people who do not want to be involved with full volatility and all the risk related to holding Bitcoin directly. Saylor also said that MicroStrategy has basically pioneered the Bitcoin-backed bond market, where people trade MSTR options and high-performing MSTR equities. All the convertible bonds issued by the company are backed by 5x Bitcoin collateral, Saylor underscored.

Saylor expressed his thoughts about the recent Bitcoin ETF withdrawals, stating that because Bitcoin is highly liquid, quick-moving traders are selling it at the slightest hint of market risk, while long-term investors continue to own Bitcoin. As a result, a significant number of short-term traders are selling Bitcoin, which in turn affects the overall sentiment surrounding the BTC ETF, as per him.

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2024-09-09 16:49