Bloomberg's Interview on Investment Mindset! MicroStrategy CEO: Enduring volatility is fundamental, will sell all Bitcoin if necessary

The Nasdaq-listed company MicroStrategy has gradually invested over $400 million from its balance sheet into Bitcoin, causing a frenzy in the crypto community. However, in a recent interview with Bloomberg, CEO Michael Saylor surprisingly stated that if necessary, liquidating all the held Bitcoin wouldn't be difficult.

Although news about MicroStrategy's Bitcoin investments has been reported multiple times, the recent interview with Bloomberg reveals many underlying details. The process of MicroStrategy's Bitcoin investments is as follows:

• In 2013, he once claimed that Bitcoin would die and compared it to a game of chance
• In 2020, started learning about Bitcoin from scratch, emphasizing the need for shareholders and stakeholders to understand
• On August 11th, invested $250 million (21,454 BTC) when the Bitcoin price was around $11,700
• On September 11th, invested $175 million (16,796 BTC) when the Bitcoin price was around $10,300

Resisting Inflation, Setting Sights on Bitcoin

MicroStrategy CEO Michael Saylor stated that prior to the COVID-19 pandemic, the company's $500 million was predominantly invested in U.S. short-term bonds. However, with the outbreak of the pandemic, returns plummeted, and he anticipates inflation to rise to over 20% annually. He noted:

Once bond yields drop below negative 10%, all our efforts to manage funds would be in vain, and the company would be like a $500 million asset melting ice cube. We considered stock buybacks and real estate investments, but the pandemic hit most markets hard. It wasn't until we noticed Bitcoin, which outperformed cash and even gold. Unlike the limited supply of Bitcoin, gold is still being mined, so the expected return rate for gold remains lower.

Investment Supported by Shareholders, Expecting Other Public Companies to Follow Suit

Aside from his own optimism, Saylor mentioned MicroStrategy's top ten shareholders, stating that they strongly support the Bitcoin investment. He also predicted that other companies will adopt a similar strategy and invest in Bitcoin within three to six months, saying:

Initially, it may be private companies as they are less conservative, followed by companies of similar scale to MicroStrategy, and then small to medium-sized enterprises.

No Hesitation to Exit When Necessary

Although Saylor appears to be a Bitcoin believer, he claims he is not stubborn and inflexible. If bond yields spike, he will abandon Bitcoin. While there are currently no plans to sell Bitcoin, he pointed out the unique 24/7 trading market of cryptocurrencies:

I can settle at any given day of the week. If I needed to sell $200 million worth of Bitcoin, I believe I could do it by Saturday, which may cause a 2% price fluctuation.

Since MicroStrategy's entry into Bitcoin, they are currently experiencing nearly a 10% loss. However, Saylor emphasizes that enduring volatility is a necessary condition and not a reason to sell, as Bitcoin remains the only asset he foresees with high returns in the future.