Michael Saylor contrasts MicroStrategy's operational enterprise software cash flows with the potential yields from its Bitcoin balance sheet.
Opinion
Saylor: Bitcoin Is the Greatest Corporate Treasury Asset of Our Lifetimes
“Bitcoin is an exploding asset class. It's really a, it's the greatest treasury reserve asset of our lifetimes, and it's the solution to every company's treasury problem.”
Insight
Saylor: Converting Corporate Cash to Bitcoin Turns Liabilities Into Assets
“So if you take a company with cash and you invest in Bitcoin, you have invested, you have converted a liability to an asset.”
Insight
Saylor: Companies should convert cash, debt, and equity into Bitcoin
“So the big idea here is you want to fix any company, sweep all the cash flows into Bitcoin, convert the treasury into Bitcoin. Borrow against your future cash flows in dollars. Convert that into Bitcoin. Finance all your fixed assets in dollars. Convert that i…”
Prediction Not checkable as stated
Saylor: Bitcoin will become a $10T primary global treasury reserve asset
“You know, people that understand Bitcoin think it's going to grow to become the 10 trillion dollar asset that gold is, and then it's going to replace negative yielding sovereign debt and then corporate debt and ultimately it will become the primary treasury re…”
Disclosure
Saylor: MicroStrategy's Two Strategies Are Selling Software and Holding Bitcoin
“The business has two strategies, and the first strategy is we sell business intelligence software to our customers, and the second strategy is we acquire and hold Bitcoin. That is the business.”
Assertion Not checkable as stated
Saylor: Corporate cost of capital surged to 25% after March 2020
“The treasury problem is that subsequent to March, 20 20, the cost of capital exploded from eight percent to 25%. And you can see that in the performance of the S&P 500 index, which went from about eight percent a year for a decade to more than 25% in that next…”