Michael Saylor Advocates Bitcoin Over Bonds: A Strategic Shift for Corporations

January 15, 2025 03:46 PM AEDT | By Team Kalkine Media

Michael Saylor Advocates Bitcoin Over Bonds: A Strategic Shift for Corporations — Image source: Shutterstock

Bitcoin's Corporate Potential

Saylor likened Bitcoin to a steel framework that solidifies a company's treasury structure. Conversely, he characterized traditional bonds as a less reliable asset, likened to wood. He asserted that firms aligning with Bitcoin would gain a sturdier and more adaptive financial base.

While advocating this shift, Saylor pointed out that giants like Microsoft (NASDAQ:MSFT) and Nvidia (NASDAQ:NVDA) have yet to embrace Bitcoin in their portfolios. Efforts to introduce Bitcoin as a treasury asset during a recent Microsoft shareholder meeting faced resistance, underscoring mixed sentiment around corporate adoption of the cryptocurrency.

MicroStrategy’s Growing Bitcoin Portfolio

MicroStrategy continues to expand its Bitcoin holdings. The Virginia-based company recently acquired an additional 2,530 Bitcoin for $243 million, at an average price of $95,972 per coin. With this purchase, MicroStrategy now holds 450,000 BTC, acquired for a total of $28.2 billion at an average price of $62,691 per coin. This positions the firm as one of the largest corporate holders of Bitcoin, nearing a 2.5% stake in the asset’s total supply.

By comparison, BlackRock’s (NYSE:BLK) Bitcoin-focused ETF, IBIT, holds about 555,948 BTC. The continued investments by MicroStrategy underline Saylor’s unwavering belief in Bitcoin’s potential as a treasury reserve.

Inspiration for Others

MicroStrategy’s approach appears to resonate with others. Some U.S. states, including North Dakota and New Hampshire, are exploring digital assets for state portfolios, reflecting growing acceptance of cryptocurrency in financial strategies.

The message from Saylor is clear: Bitcoin offers a path to financial modernization for those willing to rethink traditional approaches.

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