Michael Saylor, the co-creator and executive chairman of MicroStrategy business software-making giant, visited thr CNBC studio to elaborate on how Bitcoin has helped the company to reach major milestones and surpass other companies in the S&P 500 index.
He shared his take on several big Bitcoin-related questions with the CNBC Squawk Box hosts.
I enjoyed the opportunity to discuss #Bitcoin and strong, fast, smart money with @JoeSquawk, @BeckyQuick, and @AndrewRSorkin this morning,pic.twitter.com/BUXa2IZ8II
— Michael Saylor⚡️ (@saylor) September 9, 2024
MicroStrategy beats all other companies in S&P with Bitcoin
First off, Saylor reminded the hosts that since August 2020, MicroStrategy had purchased $8.3 billion worth of Bitcoin, and BTC has been going up roughly 44% every year since then, whereas the S&P 500 index has been rising by 12%.
What’s more is that since MicroStrategy began using Bitcoin, its share price has soared by 825%, and the company is currently the number one performing stock in the S&P index, with Nvidia following with 821% growth. Therefore, Saylor stated with pride, MicroStrategy beats every single company in the S&P 500 index using its Bitcoin-based strategy.
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.
However, this is generally a source of cash for it, Saylor said. What the firm has been mostly focused on is accumulating more Bitcoin and letting investors join them by purchasing convertible bonds created by MicroStrategy: “What we are doing is securitizing Bitcoin,” the CEO stated, making it clear that this is currently their primary business.
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 also commented on the recent Bitcoin ETF outflows, saying that since Bitcoin is the most liquid asset, short-term traders are dumping it at the first signs of risk on the market, while long-term investors keep holding BTC. While many fast money traders are shorting Bitcoin, this is impacting the BTC ETF sentiment, according to him.
