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Corporations Will be the Next Big Buyers of Bitcoin
Today, 41 companies hold bitcoin as a reserve asset
Teeka Tiwari
May 30, 2024
Corporations Will be the Next Big Buyers of Bitcoin
Michael Saylor is one of the smartest men in the crypto space I know of. Yet for a short time, bitcoin’s legendary volatility made him look like the dumbest.
Saylor founded MicroStrategy in 1989. The company makes business intelligence software and provides cloud-based services.
In August 2020, it became one of the first publicly traded companies to add bitcoin to its corporate treasury.
Wall Street called Saylor crazy for adding bitcoin to his balance sheet. On the surface, you couldn't blame them for their skepticism.
At that time, bitcoin was mired in the brutal 2018-2020 Crypto Winter… It was down more than 50% from its high and had been trading relatively sideways for nearly two years.
So, it’s no surprise the mainstream media derided him for proclaiming bitcoin is “100x better than gold.” He even got into an infamous Twitter feud with notorious “gold bug” Peter Schiff.
Here’s what Schiff tweeted about Saylor in May 2021:
CEO’s who followed @michael_saylor’s asinine advice to plug their balance sheets into #Bitcoin to hedge against an expected annual #inflation rate of 2% are now down as much as 34% on their “hedge” in one month. That’s 17 years of expected inflation losses. Time to pull the plug!”
Like me, Saylor knew bitcoin was a world-class asset that was trading way below its value. And like me, he predicted bitcoin would once again surpass its all-time highs.
Fast-forward to today… And Saylor’s bet is paying off handsomely.
In its first quarter filing with the Securities and Exchange Commission, MicroStrategy said it holds about 214,400 BTC at an average price of $35,180 per coin in its corporate treasury.
That’s an average gain of 95% over four years. By comparison, the S&P 500 is up 57% over the same span.
Here’s why I’m telling you about Saylor. He is a visionary when it comes to corporate ownership of bitcoin. And we just got an idea of what that vision will look like…
Another Company Bets on Bitcoin