MicroStrategy CEO Sees Bitcoin as a Capital Preservation Strategy

Crypto News– According to Michael Saylor, the CEO of MicroStrategy, Bitcoin presents a groundbreaking approach for corporations to safeguard their capital and enhance shareholder value. He emphasized that companies can achieve this by incorporating Bitcoin into their balance sheets, thereby breaking free from the costly cycle of mergers, share repurchases, dividends, and debt accumulation.

Saylor expressed these views in a recent post on X (formerly Twitter), where he shared a video clip from a discussion on CNBC’s show, “Squawk On The Street.” During the broadcast, Saylor asserted that evolving cryptocurrency regulations would pave the way for corporations to embrace Bitcoin as a long-term treasury asset. He believed that this move would not only create value for shareholders but also empower companies to do so using their balance sheets.

MicroStrategy CEO Sees Bitcoin as a Capital Preservation Strategy

The CEO of MicroStrategy described a prevalent market dilemma known as the “Magnificent Seven.” According to Saylor, these seven companies are responsible for the lion’s share of shareholder returns, while the vast majority of the remaining seven thousand companies struggle to deliver value to their shareholders.

Michael Saylor explained that MicroStrategy’s unique strategy lies in leveraging both its balance sheet and its profit and loss (PnL) statement. He pointed out that his company boasts more than $5 billion in assets on its balance sheet, and Bitcoin’s growth rate exceeds the cost of capital by three to four times.

Saylor envisioned a scenario where other companies could transform their balance sheets from liabilities into assets. He observed that the current accounting system favors the use of credit and sovereign debt, but the after-tax yield on credit is failing to keep pace with the cost of capital.