Michael Saylor Calls Microstrategy Bitcoin Game ‘huge Success’ And Promises To Buy More Btc
MicroStrategy CEO Michael Saylor called his multi-billion dollar purchase of bitcoin a “huge success” in adding value to shareholders. He wrote about this in a letter to investors, published last Thursday.
“The adoption of bitcoin as our primary treasury reserve asset has separated us from regular competitors and lifted our brand,” he wrote.
However, he called the almost two-year strategy of buying bitcoins as “complementary” to the analytical work of the company, which is already several decades old.
“We will continue to pursue both strategies vigorously,” he said.
He wrote that MicroStrategy spent $3.97 billion to acquire 129,218 bitcoins at an average of $30,700 each. When bitcoin trades almost $10,000 above that amount, trading remains positive, though not as much as when BTC hit an all-time high of $69,000.
Sailor’s acquisition strategy is getting more and more creative. What started as an experiment with excess cash caused by COVID has led to stock sales, convertible bill offerings, and crypto-backed loans, all to buy more bitcoin. According to Saylor, MicroStrategy is the biggest bitcoin bull on Wall Street.
An investor letter published on Thursday shed some light on the quirky world of corporate bitcoin purchases.
First, Saylor continues to “personally provide” executive teams’ liability insurance. MicroStrategy abandoned its enterprise plan last June because the “novelty” of its bitcoin buying strategy resulted in rates that were too high.
The documents say that bonus payments to executives are partly influenced by their contribution to the bitcoin strategy. And MicroStrategy’s four outside directors continue to be paid for board work in bitcoin rather than fiat, a rarity in corporate America to say the least.
At the same time, in MicroStrategy, he is actually the king. Michael Saylor owns 68.1% of the “total voting power” in the company he founded in late 1989. Yes, he is one of the oldest Wall Street executives.