Saylor said the U.S. Federal Reserve's incessant money printing - it has issued over $2 trillion this year alone - convinced him to park MicroStrategy’s treasury funds in Bitcoin, amidst concerns of global inflation and traditional yields tumbling to near-zero in recent times.
Saylor has no regrets over the purchase either, despite the price drop this week. “We feel pretty confident that Bitcoin is less risky than holding cash, less risky than holding gold,” he said.
He added that Bitcoin’s price volatility - which typically compels investors to sell - does not change the firm’s core thesis. “Right now this is the only thing we can find with a positive real yield,” Saylor noted.
Saylor said the so-termed asset inflation will surge to more than 20% per year, which would erode the purchasing power of the U.S. dollar. This means that even if an investor makes returns on their assets; the rising costs alone will off-set any gains or profits.
Once the real yield on our treasury got to more than negative 10%, we realized that everything we are doing on P&L is irrelevant. We really felt we were on a $500 million melting ice cube.
Saylor predicted that other private and public companies will get into Bitcoin in the “next three to six months,” starting with private and smaller businesses that usually do not have a large board of different investors to convince before deploying funds into investments.
Meanwhile, the 55-year-old software entrepreneur said he intends to continue buying Bitcoin with cash from operations, the report stated.
MicroStrategy is among the first publically-traded companies in the world to have moved thier treasury assets to Bitcoin over the usual alternatives like real estate or government bonds. As the BTC Times reported earlier, the firm owns over $425 million in Bitcoin at press time, which it purchased over two separate periods.