Michael Saylor, CEO of MicroStrategy
[Editor’s note: Michael Saylor’s and Vala Afshar’s opinions are their own, and their enthusiasm for Bitcoin should not be construed as investment advice. For a nuanced introduction to cryptocurrency, please see: “What is crypto? The business starter guide to cryptocurrency.”]
Michael Saylor is the chairman and CEO of MicroStrategy (MSTR), a publicly traded business intelligence company he founded in 1989. Saylor was the founder and founder of Alarm.com, one of the first home automation and security companies, and Angel.com (sold to Genesys for $ 110 million in 2013), one of the first cloud-based providers of interactive voice response services. Saylor is a named inventor on more than 40 patents. Recognized as the inventor of relational analytics, he led MicroStrategy into the fields of web analytics, distributed analytics, mobile analytics, cloud computing, mobile identity, and IoT. Saylor is the author of The Mobile Wave: How Mobile Intelligence Will Change Everything, published in 2012. The book anticipated the impact of mobile, cloud and social networks on global political and economic development and the rise of Apple. Amazon, Facebook and Google. Saylor founded and acts as the trustee for Saylor Academy (saylor.org), a nonprofit that teaches more than 800,000 students for free.
Michael Saylor is also an advocate of the Bitcoin standard. His company MicroStrategy owns ~ 91,579 bitcoins. The board of directors at MicroStrategy is paid in Bitcoin. Saylor believes that Bitcoin is the most powerful and disruptive technology of our lives. To learn more about why companies should invest in Bitcoin, Ray Wang, CEO and founder of a Silicon Valley-based consulting firm Constellation Research, and Michael Saylor invited to our weekly DisrupTV show. Here are the key takeaways from our conversation with Michael Saylor.
The digital transformation of assets is the fastest form of current transformation
In the past 12 months, digital transformation has accelerated in two areas. The first areas concerned business areas such as sales, service and marketing with decentralized and exclusively digital stakeholder engagements. The speed and efficiency of the way companies sell, market, and serve customers has increased rapidly. The second area of digital transformation was asset transformation. This is what Bitcoin is all about. Saylor referred to the digital transformation of photos, music, videos and books and their rapid movement. Now we are seeing a transformation of gold, silver, bonds, stocks and money. This is a profound change that will affect every company and every person on earth. And the digital transformation of assets is faster than any other transformation.
My latest thoughts on why #Bitcoin is the most powerful and disruptive technology of our lives, why it is irrational and tragic to dismiss it as speculative zeal on how good it is for the health and prosperity of the US and the rest of the world.https : //t.co/lWDizIWuPN
– Michael Saylor (@michael_saylor) April 5, 2021
Bitcoin is the most powerful treasury asset for institutional investments
Saylor said you’d likely hear what bitcoin was if you asked a company about their bitcoin strategy in February 2020. or “Why do I need a Bitcoin strategy?” Saylor believes that all current treasury strategies are broken when you buy low yielding bonds. The money supply is growing and purchasing power is falling dramatically. The idea behind Bitcoin using principles first is that you recognize loss of purchasing power and then apply a different treasury strategy. MicroStrategy found that Bitcoin was the strongest treasury asset it could find. On February 3rd and 4th, 2021 Saylor held a “Bitcoin for Corporations” conference. The meeting was an attempt to convince other executives of the usefulness of Bitcoin for their portfolios. Managers from over 1,400 companies were present. Among the guests were SpaceX executives, according to news reports. On Monday, February 8, 2021, Telsa, Elon Musk’s electric vehicle company, announced it had purchased $ 1.5 billion worth of Bitcoin. Saylor noted that Bitcoin has grown 200% annually in a decade and 800% in 2020. Converting a depreciating asset into a trillion dollar appreciating asset offers your shareholders a positive cycle. Saylor said the only disagreement he had with Musk was that he recommended Tesla to buy $ 10 billion in bitcoin.
MicroStrategy bought another ~ 253 bitcoins for $ 15.0 million in cash at an average price of ~ $ 59,339 per #bitcoin. As of April 5th, 2021, we have purchased ~ 91,579 bitcoins for ~ 2.226 billion USD at an average price of ~ 24,311 USD per bitcoin. $ MSTRhttps: //t.co/OMQMhA85xw
– Michael Saylor (@michael_saylor) April 5, 2021
2021 will be the first year of Bitcoin’s institutional investment
The first mover advantage is a real benefit for cryptocurrency investors. If you are the first city, country, or company to invest in Bitcoin, you can get significant benefits from this appreciative asset. Saylor believes you can create momentum by trading assets, generating investment income, and lifting your balance sheet instead of your income statement. Saylor points to the recovery of the K-shape, with Wall Street companies adding 25-40% to their balance sheets and doing nothing. Mainstream companies have to work 25-40% harder to win nothing, and if your business strategy is asset poor and manufacturing rich then you are sailing against the wind. Only 32 of the 40,000 publicly traded companies have Bitcoin on their balance sheets. In February 2020, Bitcoin was a consumer game, according to Saylor, but now Bitcoin is an institutional game. Bitcoin is now digital gold. MicroStrategy was the first publicly traded company to invest in Bitcoin, followed by Square, Tesla, and others. Regarding Bitcoin’s institutional rollout, Saylor notes that the year zero was from March 2020 through February 8, 2021 when Tesla announced the purchase of Bitcoin, and the first year in terms of legitimate institutional investments in Bitcoin now and in the next 36 months.
The mobile revolution, powered by mobile wallets, will drive the adoption of strong digital assets, including bitcoin
Saylor predicts that 8 billion people will have access to digital wallets. The mobile wave provides access to one level of the payment network based on dollars, euros or yen on compliant payment rails. The second level is access to savings accounts with access to high quality assets – this includes Bitcoin, ETF and stocks. Saylor believes that the loss of assets that create negative growth will be pushed aside. Strong assets and strong currencies will win. Saylor believes there will be 5 billion US dollar mobile wallets and that the US dollar will be strong and a winner. Saylor also believes that Bitcoin is the most secure database and network in the world when it comes to cybersecurity threats. The security threat with Bitcoin is at the second level. Saylor provided users with numerous damage control options.
Michael Saylor and Elon Musk discuss institutional investments in Bitcoin on Twitter.
Your future compensation will be in bitcoin
Saylor reminds us that Bitcoin is a savings account that has been yielding 200% tax-free interest for a decade. It’s a great way to save money. The Bitcoin savings account is the best way to grow your wealth. The company’s new share program may be based on compensation with Bitcoin. Saylor assumes that there will be an explosion of financial offers based on Bitcoin in the next 12 months.
I strongly recommend that you listen to our entire conversation with Michael Saylor to learn more about the future of digital currencies and the importance of institutional investments in Bitcoin. Saylor also shared very exciting digital transformation programs and offerings from MicroStrategy. His company quickly eliminates friction losses in business processes and customer loyalty. Saylor provided several examples of how MicroStrategy is helping its customers create value at the speed of need. I also encourage you to follow Saylor on Twitter for daily insights into market trends.
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