Michael Saylor, executive chairman and co-founder of MicroStrategy (NASDAQ:MSTR), likened Bitcoin to “Manhattan in cyberspace,” describing it as a long-lasting asset in an interview on Wednesday.
What Happened: Saylor emphasized the unique nature of Bitcoin, highlighting its capped supply and its status as a global, digital commodity, in an interview with Barron's.
"Bitcoin is actually a way to store value without a trusted intermediary. I'm putting my money in cyberspace, and I want to transform the capital from financial and physical to digital," Saylor said.
"It is indestructible, immortal, invisible, and you don't have all the things that drag down the value of a building. So think of it as Manhattan in cyberspace."
Saylor called the flow of money into Bitcoin to a flow of money from the 20th century to the 21st.
MicroStrategy’s strategy of leveraging Bitcoin has significantly impacted its stock performance. The company’s shares have surged 465% year-to-date, vastly outperforming the S&P 500’s 27% gain.
Over the past two years, MicroStrategy’s stock has climbed an astonishing 1,773%, compared to the index’s 48% rise, according to Barron’s.
Saylor also discussed MicroStrategy’s capital-raising plan, which includes issuing stock to purchase Bitcoin. He stated that this approach allows the company to benefit from Bitcoin’s growth, which he believes yields more than the S&P 500.
As for MicroStrategy's primary product, Saylor said it's now actually a “Bitcoin treasury company,” with its treasury operations significantly outpacing its software business in terms of earnings.
Why It Matters: Saylor has been a prominent advocate for Bitcoin, consistently promoting its potential as a valuable asset. In a recent interview, he revealed that MicroStrategy is generating $500 million daily from Bitcoin as its value nears $100,000.
Saylor has also been vocal about the opportunity cost of not investing in Bitcoin. He criticized Warren Buffett for not utilizing Berkshire Hathaway’s cash reserves to invest in Bitcoin, suggesting that it has resulted in significant capital destruction.
Moreover, Saylor’s approach to Bitcoin has positioned MicroStrategy as a key player in the Bitcoin space, branding it as the “public equity play on Bitcoin maximalism."
Price Action: MicroStrategy's stock closed at $387.47 on Friday, falling slightly by 0.35%. Year-to-date, the stock has gained 465%, according to Benzinga Pro data.
The MicroStrategy stock has a consensus rating of "Buy." The highest price target is $690, while the consensus price target is $449.50, implying a 16% upside.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo courtesy: Michael Saylor / MicroStrategy
