The Best Time To Buy BTC Is Now – Michael Saylor
Microstrategy CEO and founder, Michael Saylor, has stated that he remains bullish about this company’s BTC investment strategy. He also dismissed rumors that some of the company’s BTC holdings had been hit by a margin call. Saylor reaffirmed that the company would keep buying more BTC. He also said he would keep increasing his personal BTC portfolio.
Saylor Doesn’t Doubt Microstrategy’s BTC Adoption Strategy
Michael Saylor has repeated that adopting a BTC strategy remains his company’s best decisions in the last two years. The company’s CEO restated this stance following the huge decline in the price of the leading digital asset.
BTC came close to trading at sub-$20K levels on Wednesday. According to him, BTC has outperformed other top assets in the last two years. He said BTC’s performance is ten times better than the Nasdaq index, gold, and oil in this period.
Saylor aired his opinions in a recent interview with CNBC. He restated the commitment of the software intelligence company to keep buying more BTC at its present value. The company CEO added that BTC is risk-off value storage for the next ten years. He claimed that the current volatility affecting the entire crypto market does not affect BTC’s nature.
Saylor further claimed that no one that holds BTC within the next four years would lose his investment no matter what happens in the market. According to him, BTC’s 4-year moving average currently stands at about $21k. Hence, its current price is a bargain buy opportunity.
He said Microstrategy would keep increasing their BTC holdings so long they have available cash flow. Saylor’s Tuesday tweet hints that the company may start buying more BTC soon. The billionaire’s tweet read, “stack sats and stay humble.” Microstrategy is the corporation with the largest BTC holdings.
The company holds nearly 130K BTC at an average price of $30.7K. BTC currently trades at $21,305.60, according to current Coinmarketcap data. However, that price represents a 2-year low. That means Microstrategy’s BTC holdings put them at an unrealized loss of more than $1B.
Buying More BTC With A Loan
Saylor also spoke about the firm’s BTC purchase through a long from Silvergate bank. He claimed that the $205M loan represents a small percentage of the company’s BTC balance sheet. Hence, he stated that the rumors that Microstrategy would get a margin call would only increase his fame and the company.
“We have a multi-billion-dollar balance. So, collateralizing a $200M loan means nothing. We have the collateral to cover it tenfold.” The interviewer asked Saylor about the recent rate hikes concerning the company’s BTC loan purchase.
He said the company’s debt of $2.2B at an interest rate of 1.8% was smart. He added that the debt is unsecured, and the additional $500M won’t be due till 2029. Thus, “the company’s balance sheet is healthy even if the interest rate doubles.”
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