In an interview with CNBC, MicroStrategy Executive Chairman Michael Saylor supports the idea of the United States having a strategic reserve of Bitcoin, noting the benefits to the country and the company. He said that Bitcoin is a stable digital asset that can fundamentally change the paradigm of economic strategy. The recognition comes amid a rebound in Bitcoin prices, rising by more than 5%.
Michael Saylor backs U.S. Bitcoin reserve plan
The recent price increase of Bitcoin exceeds 5% and is supported by Michael Saylor’s strategic insights. He noted that the Bitcoin Conference 2024 in Nashville is an important event for the industry, highlighting the increasing adoption of cryptocurrencies. Michael Saylor noted that the conference attracted high-profile figures including presidential candidates and CEOs, which he said was indicative of significant changes in the industry.
He also praised the recent progress of Senator Cynthia Lummis’ Bitcoin Reserve bill in the Senate. He compared this legislative action to other key economic actions in the country’s history, including the Louisiana Purchase, and noted that it could have had the same impact on the country’s financial system. The bill proposes establishing a Bitcoin reserve to cover the national debt and purchasing 200,000 Bitcoins each year for the next five years.
Thaler advocates using Bitcoin for national reserves
Michael Saylor focuses on Bitcoin. It is a rare and valuable asset similar to owning prime real estate, he said.
“Bitcoin is not just a currency; it is a currency. It is the foundation of the new economy of the future,” he said.
This view is consistent with his proposal to include Bitcoin in the national strategic reserve, arguing that Bitcoin is suitable for long-term storage of value due to its scarcity.
He also discussed Bitcoin’s decentralization, pointing out that the asset’s value as property outweighs the issue of government intervention. Thaler believes that it is better to use digital assets to promote national economic plans. He dismissed the limitations of the traditional financial system and called Bitcoin a 24/7 modern financial tool that redefines access and effectiveness.
Traditional finance operates at 19%. Capital, like air and water, should be 100% available. #bitcoin Available to anyone, anywhere, anytime. pic.twitter.com/W3RO7CRq8V
— Michael Saylor⚡️ (@saylor) August 6, 2024
MicroStrategy plans to acquire more Bitcoin
MicroStrategy intends to acquire more Bitcoin by raising equity and convertible debt and using operating cash flow. Michael Saylor outlined the company’s approach to expanding the number of Bitcoins per share, which the CEO believes will create shareholder value.
“Our shareholders believe that the more bitcoins the company holds per share, the better,” he said.
However, MicroStrategy’s core business has been criticized for its performance in the market. Saylor explained that the industry is solid enough to support its Bitcoin acquisition plans. He highlighted the company’s strengths as an operating company, able to manage flexible capital and cash flow, unlike other trusts. Saylor said this will strengthen the company’s position in the digital asset economy and keep pace with the changing global financial system.
Also Read: Metaplanet Raises $70M to Expand Bitcoin Portfolio with Issuance
