Apr 2, 2022 4 min read

Michael Saylor's MicroStrategy Bets The House On Bitcoin

Michael Saylor's MicroStrategy Bets The House On Bitcoin
Photo by Krissia Cruz / Unsplash

Wiser! Essay: Michael Saylor has bet the MicroStrategy house on Bitcoin. The software company he leads now owns more Bitcoin than any other Corporation in the world.




w/CryptoEconomy


MicroStrategy Owns More Bitcoin Than Any Corporation In The World

BackStory:  MicroStrategy may be an analytics software company, but it is better known as the firm that put all of its eggs into the Bitcoin basket.

Since 2020, MicroStrategy has put all the money it can lay its hands on to buy up Bitcoin. In the words of Charles Dickens, MicroStrategy is heading for "misery".

Microstrategy's software business made $20 million in cash over the last three years. However, its investment in Bitcoin was $3.77 billion up to Feb.

Which immediately made me think of this wisdom written by Charles Dickens in the novel David Copperfield:

“Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness.
Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery."

They have sold bonds, convertible notes, and stock to put Bitcoin onto their balance sheet. And that's not the end to it as Microstrategy doubles down. They just borrowed another $205 million, secured by its own Bitcoins, to buy even more.

It's the mother of all gambles based on an unwavering belief by CEO Michael Saylor that Bitcoin is only going one way; UP!

The company said in a recent filing that because of the "uniqueness of our Bitcoin acquisition strategy," they haven't been able to get director and officer liability insurance on terms they like. Instead, Michael Saylor, is personally insuring the directors and officers of the company against any legal claims

SoWhat?:  Up until now, it's worked out well for Microstrategy. More happiness than misery.

Their Bitcoin holdings are worth at least $6 billion at the current price point of about $47k.

On the flip side, it hasn't worked out so well for shareholders. Last year, the company sold stock at $707 a share to help it raise money to buy Bitcoins. Stock closed at $520 yesterday.

The moral of this story: Go hard or go home, especially when it's on someone else's dime!

👀 Watch what Michael Saylor has to say about Bitcoin in this interview from last week...


w/Bitcoin


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w/FurtherReading


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Wiser! Essays: Gary Vee had never heard of NFTs 9 months ago. But he spent 50 hours understanding what it was, drew 10k sketches and sold them for $91m in 90 days.
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Wiser! #49 (Premium): Web3 is everything crypto and the economy that is forming around it; DeFi, DAOs, Dapps, Decentralised, NFTS. It’s on the same course as the Metaverse, just taking a different route. In this 2 Part series, I make sense of what’s happening and what’s next for the Internet.
The Intoxicating Power of NFT Status is Fuelling a $40bn FOMO
Wiser! #64 (Premium): NFT prices are being fuelled by Status and Scarcity. It’s more than just speculating for a huge pay day, NFTs are about bragging rights. And access to a closed community. Sprinkle a limited supply and, voila, you have a $40 billion market!

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