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Michael Saylor, executive chairman of MicroStrategy, has revealed the company's remarkable agility in acquiring Bitcoin. He stated that MicroStrategy can convert capital into Bitcoin almost instantaneously, capable of purchasing $100 million worth of the cryptocurrency within an hour of raising the funds. This highlights the efficiency of their investment cycle compared to traditional asset classes.
Key Takeaways
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MicroStrategy can acquire $100 million in Bitcoin within an hour of raising capital.
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The company's investment cycle is significantly faster than traditional investments like real estate or oil and gas.
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MicroStrategy is the largest corporate holder of Bitcoin, with over 640,000 BTC.
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Saylor dismisses critics as "strategically ignorant" regarding the company's Bitcoin strategy.
Unparalleled Speed in Bitcoin Acquisition
Saylor elaborated on this capability in a recent interview, stating that MicroStrategy can sometimes sell $50 million to $100 million per hour and simultaneously purchase an equivalent amount of Bitcoin within the same hour. He noted that the company could raise a billion dollars in a day and be fully invested in Bitcoin by the evening.
This rapid deployment of capital into Bitcoin underscores the speed at which treasury firms can operate. Saylor emphasized that their investment cycle is "a thousand times faster" than those in technology, real estate, oil, and gas, or "anything else you’ve ever seen before in your life."
MicroStrategy's Dominance in Bitcoin Holdings
MicroStrategy holds the distinction of being the largest corporate owner of Bitcoin, possessing 640,250 BTC as of its most recent purchase on October 13. This substantial holding represents nearly 2.5% of Bitcoin's total supply. Saylor believes this strategy allows MicroStrategy to accumulate Bitcoin and deliver returns to investors much faster than traditional real estate ventures, which can take years to yield returns.
Building in Real-Time
Saylor uses the analogy of building in real-time to describe their process. He explained that if a buyer wanted to purchase $500 million in Bitcoin, MicroStrategy could effectively "build a building in a minute." This means the trade would be completed, cash exchanged, collateral created, and the underlying Bitcoin purchased within 60 seconds.
Addressing Skeptics and Critics
MicroStrategy's aggressive Bitcoin accumulation strategy, which began in October 2020, has drawn criticism, including concerns about potential dilution for shareholders. However, Saylor remains unfazed, characterizing skeptics and cynics as "strategically ignorant." He argues they fail to grasp the operational mechanics and potential benefits of the company's business model. Saylor asserts that equity investors value MicroStrategy based on its Bitcoin yield and appreciation per share, while credit investors value its credit security based on USD yield, effectively swapping fiat yield for Bitcoin yield with Bitcoin as collateral.
Sources
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Strategy can buy $100M of Bitcoin within an hour of raising it: Saylor — TradingView News, TradingView.
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Strategy Can Buy Millions Of Bitcoin Immediately: Saylor, Cointelegraph.
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