MicroStrategy CEO Michael Saylor on Friday defended his enterprise software company’s debt-financed Bitcoin purchases, telling CNBC that he saw buying the cryptocurrency right now as akin to investing in Facebook in the early days of social networking.
“We have $ 2.2 billion in debt and pay around 1.5% interest, and we have a very long time horizon,” Saylor said on Squawk on the Street. “Our position is that being a leveraged, bitcoin long company is a good thing for our shareholders.
If you borrow billions of dollars at 1% interest and invest in the next big tech digital network that you thought would be the dominant Amazon or Google or Facebook, why not? said Saylor. “I mean, if I could borrow a billion dollars a decade ago and buy Facebook for 1% interest, I would have done pretty well.
Everyone is looking for this open way of storing and moving values using a computer chip and cell phone at the speed of light, ”said Saylor. “You had Google. They made digital books. They had Facebook; They created digital communication. Apple gave us digital music and Amazon gave us digital retail. Bitcoin is digitally owned on a big tech open currency network.
In our view, it’s only a matter of time before billions and billions of people put cell phones in Bitcoin, and we just want to be there first. “