Michael Saylor Reveals What’s Behind MicroStrategy’s Success in the Bitcoin Sector

Michael Saylor, founder of MicroStrategy, recently shared the core principles that guide his company's BTC investment strategy.

MicroStrategy’s approach revolves around a “buy and hold” policy where Bitcoin (BTC) is considered a permanent and core asset in the company’s portfolio. This commitment underscores the company’s long-term belief in BTC’s role as a global reserve asset, seeking to hold BTC regardless of market volatility.

$MSTR is in an exclusive relationship with $BTC. pic.twitter.com/JNOIz98iuO

— Michael Saylor⚡️ (@saylor) November 1, 2024

Saylor’s strategy involves responsible expansion by adapting to market dynamics and seeking positive returns from Bitcoin through consistent acquisitions.

Another pillar of the strategy involves strengthening MicroStrategy’s balance sheet by issuing BTC-backed fixed income securities, thereby expanding its asset holdings without diluting shareholder value.

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An important goal for MicroStrategy is to encourage global adoption of Bitcoin as a viable reserve asset for the Treasury. Saylor envisions Bitcoin as an alternative for global reserves, highlighting its potential to bring stability and innovation to financial systems. MicroStrategy’s commitment is paying off; the company currently holds over 252,220 BTC worth approximately $18 billion, making it one of the largest institutional holders of Bitcoin in the world.

Instead of diluting its equity, MicroStrategy finances its BTC purchases through bonds and debentures, ensuring that shareholder value remains intact as Bitcoin holdings grow. This approach has resulted in impressive returns that outperform many traditional assets and even leading tech stocks. Going forward, Saylor aims for MicroStrategy’s returns on BTC to increase steadily, targeting annual growth of 6-10%, underscoring his confidence in Bitcoin’s future as an investment and financial innovation.

Alexander Stefanov