MicroStrategy CEO Shrugs Off Any Chance of Trimming Its $425 Million Bitcoin Position

MicroStrategy CEO Michael Saylor has once again reiterated that the company has no plans to trim its Bitcoin position any time soon.

Even though their investment has gained over $200 million in less than four months, Saylor told CNBC in an interview that trimming its Bitcoin position would amount to “decapitalizing the company.”

Saylor was responding to a question from CNBC’s Melissa Lee on whether the company may at some point reduce its exposure to Bitcoin as a conservative measure to avoid its Bitcoin bet exceeding the company’s enterprise valuation. He said,

We love the enterprise business, intelligence business. But, we don’t want to decapitalize the company by drawing our treasury to zero. And we don’t want to allow our treasury to be debased by 10 or 20% a year either.

Rather than reduce its exposure, Saylor expressed a conviction that Bitcoin still has the potential to grow significantly, especially as investors start to understand the Bitcoin story and choose to “migrate their capital on the Bitcoin network.”

Such a move according to Saylor would @create a virtual cycle or adoption followed by price appreciation, followed by value accretion, followed by technology integration from companies like Square and PayPal, and shortly Apple and Google.@

Looking to join in on the bitcoin boom? A new report from @CitronResearch says @MicroStrategy could be your best bet. MicroStrategy CEO @michael_saylor shares why. $MSTR pic.twitter.com/Ow6FM40gBQ

— CNBC’s Fast Money (@CNBCFastMoney) November 25, 2020

He further described Bitcoin as “probably the biggest thing that’s happened over the last decade, that its adoption will be bigger than the FAANG stocks,” since 99% of investors at this point do not understand how Bitcoin is vital innovation.

Quizzed on whether MicroStrategy is a software company or a Bitcoin fund, Saylor responded:

Our PNL is a software company and we sell the world’s best enterprise business intelligence software. Our balance sheet is no longer invested in dollars. Our balance sheet is invested in BTC because we believe that is the best treasury reserve asset we could choose in the world.

Aside from MicroStrategy’s Bitcoin bet, Saylor recently disclosed that he personally holds 17,732 BTC ($175 million).