Now it’s a Great Time to Buy Bitcoin, Says Michael Saylor

Bybit
MicroStrategy CEO Believes Global Markets Not Prepared to Welcome Bitcoin Bonds
Hashflare



Michael Saylor – CEO and founder of the largest corporate BTC holder MicroStrategy – reiterated his bullish stance on the company’s bitcoin strategy and, once again, shook off the rumor regarding a margin call hitting some of the firm’s holdings. Saylor restated his commitment to continue purchasing bitcoin as well.

On the Bitcoin Strategy

Despite the primary cryptocurrency coming near to dip below $20,000, the ultimate BTC bull Michael Saylor still firmly believes that adopting the “bitcoin strategy” nearly two years ago was the best decision out of all the available options. In his view, the asset has performed 10x better than gold, oil, the Nasdaq index, and any other major options during that period.

In the latest interview with CNBC, Saylor said the US software intelligence firm will continue accumulating bitcoin at the current price. Claiming that BTC is a risk-off store of value in a 10-year timeframe, he considered that short-term volatility does not impact its nature. He added that within a four-year period, everyone who holds the asset in spite of market conditions would not lose money.

As such, he went on to explain that as BTC’s four-year moving average sits at precisely around the $21,000 level, the current price level is “absolutely a great buying opportunity.” As MicroStrategy continues to create positive cash flow, it will deploy the capital for bitcoin purchases, he noted.

Tokenmetrics

In a tweet on Tuesday, the billionaire tweeted “stack sats and stay humble,” hinting that he may soon resume the bitcoin buying spree.

MicroStrategy holds a total of 129,218 BTC, with an average cost of approximately $30,700. As reported by CryptoPotato on Monday, when BTC plummeted to its lowest price tag since December 2020 of $23,000, its unrealized loss on bitcoin had reached $1 billion, and it’s a little bit over that since the asset is now trading lower.

On Margin Call and Debt

Saylor clarified again that the $205 million loan from Silvegate bank only accounts for a small percentage of the firm’s bitcoin-focused balance sheet, so he viewed the latest rumor of the company getting a margin call as “only mak[ing] my Twitter famous.”

On a multi-billion-dollar balance sheet, we’ve only got a $200 million loan that we have to collateralize, and we’re 10x over-collateralized on that right now.”

Given the macroeconomic circumstance of rates hiking up, Saylor touted his early strategy of “borrowing $2.2 billion with a lending interest of 1.8% before interest rate doubles.” He added that most of them, in fact, are “unsecured debt,” with the other $500 million due in seven years. Therefore, he concluded that the company had a healthy balance sheet.

SPECIAL OFFER (Sponsored)
Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

PrimeXBT Special Offer: Use this link to register & enter POTATO50 code to receive up to $7,000 on your deposits.



Source link

Binance

Be the first to comment

Leave a Reply

Your email address will not be published.


*