US-based software and business intelligence company MicroStrategy has stood out in recent years with its approach of keeping company reserves mainly in Bitcoin. Michael Saylor, one of the founding partners, has attracted attention as one of the strongest advocates of long-term holding of Bitcoin and has become one of the symbol names of the company in the public eye with this strategy. Recently, Saylor brought up the possibility that the company could partially sell its Bitcoin assets.
Is Bitcoin holding strategy changing?
In his statements at the company’s last balance sheet meeting, Saylor clearly pointed out for the first time that “some Bitcoin can be sold if necessary.” Saylor, who was previously known for his slogan “never sell”, admitted that this approach contradicted his own management approach.
Saylor clearly stated that the saying “Bitcoin will never be sold” may not become an absolute rule in company management. Even
“To be specific, one should never be a net seller of Bitcoin. But it is not as catchy or widespread as this slogan.”
made his assessment. Thus, he made an exception to the company’s absolute conservative stance on its Bitcoin portfolio.
Goal: Flexible strategy for larger purchases
However, MicroStrategy stated that it will still stick to its long-term investment model. It is stated that sales moves can be evaluated to create resources for large-scale new Bitcoin purchases rather than short-term loss.
Saylor on this
“If we sell one Bitcoin, then we will buy 10 or 20 more. So we bought 10 Bitcoins, sold one, we will continue with a net of 9 more Bitcoins.”
made the statement. Thus, the company’s total asset portfolio will continue to grow.
This approach is seen as similar to the strategy of “creating resources and moving towards larger investments”, which is widely applied in the technology sector. Saylor gave as an example the ability of a technology giant to expand its data center investments without causing fluctuations in financial markets.
Response to Ponzi allegations
Economist and gold advocate Peter Schiff has long been making various claims about the Bitcoin strategy implemented by Michael Saylor and MicroStrategy. Schiff claimed that the company’s Bitcoin-based financial products created a Ponzi-type structure, suggesting that over time the company would face the risk of losing either its dividend or its Bitcoin accumulation.
Michael Saylor, on the other hand, opposed Schiff’s claims and stated that Bitcoin is digital capital and a corporate structure that uses capital and credit instruments to diversify the company’s digital treasury. Saylor also said,
“If you do not see Bitcoin as legitimate capital, you cannot see any derivative products built on it as legitimate.”
He rejected the criticism by saying.
Looking at the general picture, it can be seen that there is no radical change in MicroStrategy’s main strategy, but more flexible moves can be put on the agenda according to market conditions.
