Michael Saylor, co-founder and executive chairman of MicroStrategy, has reiterated his confidence in Bitcoin as a long-term investment.
In a recent interview, Saylor stated that no one has ever lost money holding Bitcoin for four years, underscoring the cryptocurrency’s historical resilience and long-term growth potential. Emphasizing patience and commitment, he cited Warren Buffett’s advice: “If you can’t hold it for ten years, you don’t deserve to have it for ten minutes.”
MicroStrategy’s bold Bitcoin strategy faces criticism
MicroStrategy’s pivot to Bitcoin has faced significant skepticism, particularly during downturns in the market. In 2022, an article in the Wall Street Journal labeled the company’s Bitcoin strategy as reckless, warning it could lead to disastrous consequences. At the time, MicroStrategy reported a $1.44 billion loss, its stock had plunged by nearly 50%, and Bitcoin was trading near $20,000 following the Terra crash. Critics predicted dire outcomes, including potential financial collapse, especially as Bitcoin’s value dropped further during the FTX fallout to lows of $16,000.
Despite these challenges, Saylor maintained his conviction in Bitcoin’s long-term value. His approach weathered intense scrutiny, particularly as MicroStrategy reported financial losses. Detractors raised concerns about the sustainability of relying so heavily on Bitcoin while the company’s core business performance showed signs of decline.
Bitcoin and MicroStrategy surge in 2024
In 2024, Bitcoin experienced a strong rally, with its price climbing by more than 115% this year. This surge has significantly benefited MicroStrategy, whose stock has skyrocketed by over 400% during the same period. The company now holds approximately 214,000 Bitcoin, valued at over $7.4 billion, making it one of the largest corporate holders of the cryptocurrency. MicroStrategy’s transformation from a modest software firm to a Bitcoin powerhouse has positioned it as a standout performer in the market, outpacing major companies like Nvidia.
The company’s aggressive Bitcoin strategy has led to a 1,700% increase in stock since it began accumulating the asset. However, analysts remain cautious, citing declining revenue and tight cash flow. Some predict MicroStrategy will post another quarterly loss, raising questions about the sustainability of its growth.
Vitalik Buterin challenges Saylor’s Bitcoin views
Michael Saylor’s recent comments on Bitcoin custody have also sparked debate within the crypto community. Saylor suggested that Bitcoin holders consider using major banks for asset custody, a stance criticized by Ethereum creator Vitalik Buterin. Buterin called Saylor’s proposal “insane,” arguing that it contradicts the decentralized ethos of cryptocurrencies. He warned that giving institutions like BlackRock and Fidelity control over Bitcoin custody could undermine financial freedom principles underpinning the crypto movement.