MicroStrategy CEO Michael Saylor on Friday defended his company’s debt-financed Bitcoin purchases, saying that buying Bitcoin now equates to investing in Facebook in the early days.
At “Squawk on the Street” Saylor said: “We have $ 2.2 billion in debt, pay around 1.5 percent interest, and have a very long-term horizon. In our view, being a leveraged, long bitcoin company is beneficial to our shareholders.”
MicroStrategy was known on Wall Street last year after it started buying and holding Bitcoin, initially with cash on its balance sheet to buy the digital tokens before heading to the debt market to make more purchases. Saylor’s own profile has risen when he talks about the tremendous potential of Bitcoin and compares it to “digital real estate.”
Michael Saylor describes Bitcoin as digital property
Peter Schiff, the CEO of Euro Pacific Capital and a gold lover, tweeted to respond to MicroStrategy’s CEO Michael Saylor’s recent interview about the company’s long-term plans for Bitcoin.
Saylor called Bitcoin “digital property” and “the future of property” in an interview with Bloomberg TV on Friday July 30th. He expects all governments, banks, institutions and private investors to hold Bitcoin in the future.
Imagine holding Bitcoin for 100 years or more.
– Bloomberg TV (@BloombergTV) July 30, 2021
MicroStrategy wants to get as much bitcoin as possible by continuously buying BTC, he said, because the BTC supply is limited to 21 million. When asked whether MicroStrategy would meet Saylor’s promised 10-year deadline or sell their BTC sooner, the company’s CEO replied that he hoped MicroStrategy would hold Bitcoin “forever”.
The gold bug in a tweet, Peter Schiff attacked Michael Saylor, claiming he won’t be able to “his bitcoin to the grave.“Michael Saylor has now gone completely crazy, according to Petter Schiff.
His latest Bitcoin argument is that it is an asset to keep after you die. He could take his bitcoin to the grave with him, but I doubt that he can use it to buy anything in heaven, or in Saylor’s case in hell.
now @michael_saylor went totally crazy. Its newest #Bitcoin Pump is that it’s an asset that you can take with you after you die. He might end up taking his bitcoin to the grave, but I doubt that he can use it to buy anything in Heaven, or in Saylor’s case, in Hell.
– Peter Schiff (@PeterSchiff) July 30, 2021
In response, Saylor published an article about the theft of gold from the tombs of the Egyptian pharaohs, which perhaps suggested that wealth cannot be stored after death.
On paper, MicroStrategy made $ 1.4 billion in Bitcoin revenue, but don’t expect it to be sold anytime soon. According to CEO Michael Saylor, the company intends to own it “forever”.