• Bitcoin is a “Trillion-Dollar Opportunity” for Tech Giants, according to Michael Saylor

  • MicroStrategy’s CEO believes the company would continue to buy bitcoin and educate institutions and the general public about its merits.

    During MicroStrategy’s July 29 results call, CEO Michael Saylor stated that his company will continue to buy and hold bitcoin, which he described as “the most compelling technical opportunity of the decade.”

    Because of how much bitcoin it holds, the Virginia-based software corporation has become recognized as one of the most ardent supporters of the cryptocurrency.

    President and CFO Phong Le revealed that MicroStrategy purchased 13,759 bitcoins for an average price of $38,467 in the second quarter. The corporation had 105,085 bitcoins at the conclusion of the quarter, with an average price of $26,080.

    The company’s strategy, according to Saylor, is to continue to buy and keep bitcoin while also educating enterprises, institutional investors, regulators, and the general public about the benefits of digital property.

    To allow Le to focus on his duties as president, a CFO search is underway, and the incoming executive’s responsibilities will include driving the campaign to buy additional cryptocurrencies.

    “There will never be more than 21 million bitcoins, and we believe there is a land grab going on right now to get as much as possible,” Saylor explained.

    Continue reading to get the most important insights from the Microstrategy call.

    For the world’s largest corporations, this is a huge opportunity.

    According to Saylor, big IT businesses might produce $1 trillion in value simply by investing in bitcoin.

    He went on to say that companies like Apple, Google, Facebook, and Amazon could integrate digital property directly into their mobile apps, citing Square and PayPal as examples.

    “You will make them better by integrating this open protocol, digital property into every firm, every product, every service, and every government and every agency in the world,” he stated. “You buy bitcoin so that when Apple, Amazon, Facebook, and Google incorporate bitcoin into their products, you benefit because you can’t afford Apple, Amazon, Facebook, or Google.”

    Bitcoin and DeFi are two distinct wagers.

    When asked if MicroStrategy would consider investing in other cryptocurrencies like Ethereum, Saylor responded no.

    Platforms and exchanges focusing on decentralized finance, such as Ethereum and Uniswap, are different types of enterprises than digital currencies used as a medium of exchange.

    According to MicroStrategy, incorporating bitcoin into every firm, product, service, government, and another component of the traditional economy will improve them, according to Saylor.

    According to the CEO, the firm does not believe in the competing thesis that innovation would come through the creation of new crypto asset networks in a decentralized environment.

    “We don’t want to express a general opinion or take a financial risk on whether platform, application, or use case of bitcoin would be the most successful,” he added. “We believe that merely holding bitcoin is the least risky and most diverse investing strategy.”

    Hedge funds and the biggest IT companies are expected to drive adoption.

    During the Thursday call, Saylor stated that macro hedge funds will drive institutional adoption of bitcoin.

    “Bitcoin is beginning to register on their radar as a digital asset… “They now have a multi-year track record of bitcoin beating gold,” he added. “I believe that a significant amount of money will move from gold funds and investment funds into digital gold, which is bitcoin.”

    In June, Tudor Investment Corporation’s founder and CIO, Paul Tudor Jones, told us that bitcoin is a solid portfolio diversifier. He stated that bitcoin should account for 5% of his portfolio, with the remaining 5% invested in gold, cash, and commodities.

    Brevan Howard, a hedge fund manager, is apparently investing in digital assets, and Marshall Wace, a London-based allocator, is also moving toward the crypto industry.

    In terms of public enterprises, Saylor believes that huge founder-led tech companies would embrace bitcoin the most enthusiastically since they have compelling executives who are risk-takers and understand technological detail.

    “You don’t want to be the last big tech network to incorporate the digital property into the protocol because bitcoin transforms your billion-user digital communications company into a billion-customer cyberbank,” he continued. “They will accomplish it sooner than other publicly traded companies because they understand it and have a competitive need to figure it out.”

    According to a survey released on Thursday by crypto.com, the number of crypto users more than doubled to 221 million in the first half of 2021.

    Bitcoin’s ‘Westernization’ is a good thing.

    Saylor, like many others, sees the bitcoin mining flight from China in the wake of the country’s crypto crackdown as a good thing.

    More miners are relocating to the United States, for example, and Saylor believes that in the next six months or so, there will be an “avalanche” of publicly traded bitcoin miners.

    He believes that the miners’ shift away from China will be beneficial to the US dollar and technology.

    He continued, “Bitcoin is now aligning with the huge tech networks from Amazon, Apple, Google, and Facebook.” “These are really powerful, dominant digital networks, and while they built their supremacy by providing digital music, digital retail, digital books, and digital communications, we now have something new: digital property.”

    Saylor said that more significant institutions in the Western world are supporting bitcoin.

    Traditional banks are being compelled to enter the crypto market in order to compete with digital wallets, according to analysts. JPMorgan Chase apparently started allowing all of its wealth management clients to access crypto money recently.

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