Coin Edition -
- Microstrategy’s Michael Saylor believes that the fiat and banking crisis is driving the adoption of Bitcoin.
- Bitcoin’s recent rally led to a significant reduction in Microstrategy’s BTC impairment loss.
- Michael Saylor indicated that his firm will continue to accumulate Bitcoins as investors’ confidence in fiat continues to erode.
Bitcoin maximalist Michael Saylor recently appeared in an interview with CNBC’s Morgan Brennan where he talked about his software company and his outlook for the world’s flagship cryptocurrency. Saylor stated that the recent crisis in fiat and banking is driving the adoption of Bitcoin amid investors’ loss of confidence in competing assets.
#Bitcoin adoption is being driven by the progressive global loss of confidence in fiat currencies, conventional banking, and competing assets. I enjoyed discussing $MSTR and the outlook for $BTC with @MorganLBrennan today on @CNBCOvertime.pic.twitter.com/X0jn4pyhCt— Michael Saylor (@saylor) May 2, 2023
Speaking on Bitcoin’s recent rally, Saylor revealed that it had led to a significant reduction in the impairment loss. The latest BTC impairment charge in the first quarter of 2023 came in at $18.9 million, as compared to $197 million in the fourth quarter of last year. The rally also helped the firm strengthen its capital structure.
Michael Saylor described the software business of Microstrategy as a stable cash cow that provides the firm with enough cash flow to pay off the interest on debts and continue accumulating BTC. “Because Bitcoin has been moving up about 50% a year on average over the last three years, the real key with Bitcoin is just to be able to hold onto it and stomach the volatility,” he added.
According to Saylor, the shareholders, and bondholders of his company are now conditioned to understand that they are long-term holders of BTC. He is confident that the interests of Microstrategy’s investors are aligned, which allows them to weather the volatility associated with Bitcoin.
As for the adoption of Bitcoin, Saylor believes that it is being driven by two key factors. The first is the macroeconomic concerns about inflation, which naturally encouraged investors to move from fiat to safe-haven assets like gold and BTC. The recent collapses in the banking sector have only added to the concern of investors.
Michael Saylor also highlighted the recent crackdown on the crypto industry as another reason for the increasing adoption of BTC. He believes that the uncertainty revolving around crypto exchanges, crypto securities, and cryptocurrencies has led to a natural migration of capital to Bitcoin.
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