Michael Saylor, Executive Chairman of Strategy, discussed Bitcoin management strategy and its role in corporate finance in a recent interview.
Strategy's Expansion of Bitcoin Holdings
Currently, Strategy holds 628,791 Bitcoin, accounting for about 3% of the total supply that will ever exist. Saylor noted that the company's goal is not to own all of the cryptocurrency.
"We wouldn’t want to own all of it. I wouldn’t want to. We see Bitcoin as digital capital. The business model is to accumulate the digital capital and issue digital credit like preferred stocks against that capital," he stated.
Bitcoin Instead of Dollars for Corporate Treasuries
Saylor also expressed the view that Bitcoin is replacing cash for corporate treasuries. According to him, SEC rules prevent companies like Apple and Microsoft from buying each other's stock, thus they should consider Bitcoin as a more advantageous solution instead of using fiat currency.
"If the companies could buy each other's securities, they would be better off. But they can’t," he noted.
Strategy and the Future of the Bitcoin Market
According to Saylor, his company will continue the strategy of purchasing Bitcoin through structured offerings. The latest initiative was increased from the initial $500 million to $2.5 billion due to high investor interest. "This is the largest IPO of the year," he added.
Saylor explained the use of a multi-tiered structure that allows attracting different types of investors, stating that the strategy involves creating financial instruments that traditional investors can understand.
Throughout the interview, Saylor emphasized the significance of Bitcoin as a new asset for corporate investing and the shift away from fiat, expressing confidence in the future of cryptocurrency.
