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MicroStrategy remains fully committed to its macro-strategy of investing everything it can into Bitcoin. Company CEO Michael Saylor recently confirmed that the company would “never” sell its Bitcoin, even given the current state of the market.
Though the asset has helped the institution profit tremendously overall, it is down on its 2021 positions.
HODL Forever, Says Saylor
The CEO affirmed his devotion to Bitcoin in a recent interview with Bloomberg. However, Saylor dismissed the thought when asked whether he was tempted to sell given Bitcoin’s slide over the past two months.
“Never. No. We’re not sellers,” he said. “We’re only acquiring and holding Bitcoin, right? That’s our strategy.”
Saylor first announced his company’s plan to convert its cash holdings to Bitcoin in the Summer of 2020. The excitement generated by the move swung MicroStrategy’s stock up as high as 900% ever since the software vendor has made regular Bitcoin purchases in hundreds of millions of dollars at a time.
According to Saylor’s updates over Twitter, its most recent purchase in December put its holdings at 124,391. That’s over 0.5% of the total Bitcoin supply that will ever exist.
Yet, in light of last year, Saylor’s Bitcoin position hasn’t exactly been profitable. Since February, the average listing price for every Bitcoin his company has bought is above current levels. Nevertheless, earlier buys leave MicroStrategy’s total Bitcoin still in the green.
Fundamentally, Saylor considers Bitcoin the greatest weapon against inflation in existence. For example, in the United States, CPI inflation was 7.0% for December 2021 – the highest in 39 years.
“The best defense against inflation is a Bitcoin standard. So I don’t really think we could do anything better to position our company in an inflationary environment than to convert our balance sheet to Bitcoin,” he said.
A Defensive and Offensive Strategy
Saylor has spoken on numerous occasions arguing for Bitcoin’s astronomically high long term price potential. Calling it the “apex property of the human race,” he even surmised that it could reach a $100 trillion market cap. Per Bitcoin, that would be about $5 million.
For this reason, MicroStrategy’s Bitcoin accumulation goes beyond defensive inflation hedging and is now its primary method for making a profit. In addition, many investors are now using MicroStrategy as a quasi- spot Bitcoin ETF, given that a real one is yet to receive SEC approval.