Michael Saylor appeared on TV to evangelize Bitcoin, when asked about details of conversation with Elon Musk: "I can't say."

This year, MicroStrategy's CEO Michael Saylor, who made a name for himself by making a bold bet on Bitcoin, has become a sought-after figure in the cryptocurrency industry and major media outlets. In an interview on CNBC on the 23rd, he not only reiterated his investment philosophy on Bitcoin but also mentioned that he was unwilling to disclose the content of his conversations with Tesla CEO Elon Musk.

Preaching to Musk

Michael Saylor's conversation with Elon Musk started on December 20th, the day Musk posted a series of cryptocurrency-related memes on Twitter, including "Bitcoin is my safeword," "Bitcoin is almost as bs as fiat money," and Dogecoin DOGE.

Following this, Saylor started to "preach" in the comments, claiming:

If you want to be good to shareholders, convert Tesla's balance sheet from dollars to Bitcoin. When all the companies listed on the S&P500 follow suit, shareholders will make more money.

Musk then asked, "Is such a large transaction possible?"

Saylor not only revealed that his company had bought $1.3 billion over the past few months but also mentioned that he could privately share details with Musk.

Details of the Discussion Remain Confidential

In a CNBC interview on the 23rd, the host asked Saylor about the details of his discussion with Musk, seemingly wanting to understand if Musk would follow MicroStrategy's lead in investing the company's excess cash reserves in Bitcoin. However, Saylor stated:

I cannot disclose the contents of my conversation with Musk. I can only say that Tesla, Apple, Google, they all face the same problem, holding a large amount of cash, and this asset is shrinking shareholders' value at a rate of 15-20% per year. They need to convert this liability into an asset, and the best way is Bitcoin, which grows by 100% annually.

After Saylor's successful investment in Bitcoin, he has become one of the most faithful believers in Bitcoin. However, his claims seem exaggerated as Bitcoin has not been growing at a rate of 100% annually, and the depreciation of the dollar is not as high as 20%.

Of course, this raised questions from the host, who pointed out that the public holds cash for stability in exchange rates. As Saylor emphasized, cash loses value over time, but Bitcoin remains a highly volatile asset. In response to this, Saylor explained:

Bitcoin has indeed been highly volatile in the past, but it has been much better in recent months. It is the world's first hedge asset designed and operated on the first digital currency network. Everyone, including institutional investors, is looking for hedge assets, and they have lost confidence in gold and government bonds. In this context, Bitcoin is in the right place at the right time, making it very attractive for anyone looking to secure wealth for shareholders.

Macro Trends Have Shifted

Saylor emphasized that the crash in March changed everything, and the macro background of Bitcoin has also changed. Many institutions, including legendary investor Paul Jones, fintech Square, and prominent hedge fund manager Stanley Druckenmiller, have invested in Bitcoin. With institutions entering the market, the volatility of Bitcoin and its asset class will mature over time.

As of now, MicroStrategy holds a total of 70,470 Bitcoins, with a capital cost of $1.125 billion, and an average cost of only $15,964. The book value before the deadline was $1.74 billion.

Of course, the crypto community is most concerned about Musk's views on Bitcoin. His cryptocurrency-related tweets always pique the interest of Bitcoin enthusiasts. On Christmas, Musk posted a picture of the Dogecoin logo on Twitter, but this did not lead to another surge in Dogecoin's price.

Merry Christmas & happy holidays! 🎁 pic.twitter.com/uk6NSPwR9R

— Elon Musk (@elonmusk) December 25, 2020