“Michael Saylor’s Bitcoin Belief Unshaken: MicroStrategy’s $1.3B Loss Doesn’t Deter the Co-founder from Viewing Bitcoin as a Safe Haven for Investors”
Despite the significant losses suffered by his company, MicroStrategy co-founder Michael Saylor remains optimistic about the potential of bitcoin as a safe haven investment. The software company’s latest earnings report revealed a net loss of $1.47 billion for the year, marking eight consecutive quarters of financial losses. Despite this, Saylor maintains that bitcoin is the only reliable option for institutional investors looking to secure their assets during periods of high market volatility.
In his statement on the earnings call, Saylor said, “The only real safe haven for an institutional investor is bitcoin. Bitcoin is the only universally acknowledged digital commodity, and so if you’re an investor, bitcoin is your safe haven in this regard.” He acknowledged the challenges faced by the cryptocurrency market in the past year, including a 64% drop in the price of bitcoin and a 74% decrease in the value of MicroStrategy shares.
However, the company’s continued investment in bitcoin has resulted in significant impairment charges, amounting to $1.29 billion in 2022. MicroStrategy has been steadily acquiring bitcoin since 2018, amassing a total of 132,500 coins. The company only sold a portion of its holdings in December for tax reasons, offloading $11.8 million worth of bitcoin.
Despite the financial losses, Saylor remains committed to his company’s unconventional strategy of converting all its cash into bitcoin, signaling his confidence in the long-term potential of the cryptocurrency as a safe haven investment.
Despite recent losses, Michael Saylor, the co-founder of software company MicroStrategy, remains confident in his belief that Bitcoin is a “safe haven” for investors. In a recent earnings call, Saylor stated that Bitcoin is the only universally acknowledged digital commodity that can provide stability to institutional investors during times of high volatility. Despite a 64% drop in Bitcoin’s value and a 74% drop in MicroStrategy’s stock value last year, the company’s shares have still managed to outperform the S&P 500, Nasdaq Composite, and even Bitcoin itself, by jumping 117% since MicroStrategy started buying Bitcoin in the summer of 2020.
Saylor explained that the company measures its success by creating shareholder value, and the best way to gauge this is by examining Bitcoin’s performance. Despite its volatility, Bitcoin remains the best-performing asset in the past two and a half years, and MicroStrategy’s stock is leveraged against it. On the other hand, MicroStrategy’s shares saw a 4.7% drop in pre-market trading on Friday, following the company’s earnings report which showed a net loss of $1.47 billion for the year.
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