MicroStrategy CEO Discusses Bitcoin, Stocks, and Future Plans

Hey there! Michael Saylor, executive chairman of MicroStrategy, has been on quite the journey lately with his company’s focus on Bitcoin. It’s been a pretty wild ride with some pretty incredible numbers. MicroStrategy’s stock, MSTR, has shot up 459% this year, which is quite the jump compared to the S&P 500’s 26% increase. Over the past two years, the stock has climbed a whopping 1,831%, far surpassing the index. Trading volume for the stock has been through the roof, with only Tesla and Nvidia having higher dollar volumes. It’s definitely caught the attention of investors.

What’s really interesting is that MicroStrategy, with a market cap of $78 billion, only has about $500 million in annual revenue. For comparison, Marriott International sits at a similar market cap but has $23 billion in revenue. It’s all thanks to the recent surge in interest in Bitcoin.

I had the chance to chat with Saylor, 59, from his home in Miami Beach, and he shared some insights into their strategy. It all started with a big capital-raising plan that got announced on Oct. 30 – the largest equity shelf registration in the history of capital markets. They’re planning to raise a hefty $21 billion of fixed income and $21 billion of equity. The goal is to use the money to buy Bitcoin, which Saylor believes grows faster and yields more than the S&P 500. It’s definitely a bold move.

Saylor attributes the recent uptick in Bitcoin’s popularity to the election results and the confidence it instilled in the market. With Republicans winning big, investors saw it as a positive sign for cryptocurrencies, giving Bitcoin a boost. It’s one of those unpredictable market moments that end up working in your favor.

MicroStrategy has shifted its focus from being solely a software company to becoming a Bitcoin treasury company. The treasury operation has become a significant part of their earnings, with the value of their Bitcoin holdings ranging from $35 to $38 billion. It’s a strategic move that has paid off well. Saylor believes that as long as they continue leveraging their capital structure effectively, they can sustain this model for a while.

So, what’s the real deal with Bitcoin’s value? According to Saylor, it’s the only capped commodity in the world, unlike other commodities like silver or oil, which have an unlimited supply. Bitcoin’s capped nature makes it a unique and valuable asset. It’s fascinating to see how this cryptocurrency is reshaping the financial landscape.

All in all, MicroStrategy’s journey into the world of Bitcoin is definitely one to watch. It’s a bold move that’s paid off well so far, and only time will tell what the future holds for this innovative company.