- Saylor believes the world’s largest cryptocurrency is a “digital power.”
- MSTR outperformed BTC during its most recent recovery
Some TradFi analysts were critical Bitcoin [BTC] recentlydiscrediting its use as a hedge after massive volatility caused its value to fall 15% on August 5. And yetMicroStrategy Chairman Michael Saylor continues to defend the volatility of the world’s largest digital assets. Call it the “price you pay” for its usefulness and liquidity, he said:
“Volatility is the price you pay to create billions of dollars of credit and liquidity at your fingertips anytime, anywhere, for anyone.”
According to Saylor it is
“No one who understands Bitcoin is afraid of its volatility.”
Saylor’s Bitcoin advice to governments
But that wasn’t all, as Saylor also made a joke about the inefficiency of traditional finance (TradFi) compared to Bitcoin. He commented,
“There is a revolution taking place in global capital markets and traditional financial markets operate 19% of the time for 10% of the world. That makes it a 2% solution. #Bitcoin is a 100% solution. It is not partisan; it’s just a good idea.”
For perspective, traditional financial exchanges like the NYSE have halted stock trading in recent weeks after reported problems. On the contrary, Bitcoin has been online for more than 99% of its existence.
Furthermore, Saylor strengthened BTC as a ‘digital power‘ That should be adopted by every government. He equated it with nuclear energy and space travel.
Bitcoin strategy trend
The executive echoed a similar bullish sentiment in a recent Fox Business interview. According to the director, the stock of his company, MicroStrategy (MSTR), outperformed everything as it adopted the Bitcoin strategy.
“MicroStrategy has outperformed everything since they adopted #Bitcoin…It crushed everything.”
In fact, MSTR has eclipsed all its competitors and is up over 1000% since the cryptocurrency’s introduction in 2020.
Source: Michael Saylor
As of August, MicroStrategy owned over 226,000 BTC and planned to acquire another $2 billion worth of BTC. Saylor himself holds approximately $1 billion worth of BTC in individual capacity and is willing to store more as well.
Interestingly, other companies have also adopted MicroStrategy’s Bitcoin strategy. For example, in the United States, Block Inc., founded by Jack Dorsey and a parent company of Cash App, is one of the companies with an active BTC strategy.
Overseas, Japanese investment company Metaplanet is perhaps the most aggressive adopter of this strategy. The company recently secured ¥1 billion to add more BTC to his portfolio. As a result, the company’s TKO stock is now up +600% in year-to-date performance (in Japanese yen terms).
During the same period, MSTR even outperformed BTC, by over 97%, compared to digital assets’ 37%.
Meanwhile, on August 8, shares of MSTR effectively executed the 10-1 stock split intended to make the shares more affordable. As a result, there would be 10 times more MSTR shares at one-tenth of the previous value.
At the time of writing, MSTR was trade at $135. It has rebounded 27% against BTC’s 12% over the past five trading days.
Source: Google Finance