nder Michael Saylor's leadership, MicroStrategy made headlines in 2020 by purchasing over $1 billion worth of Bitcoin to be held long-term on its balance sheet. In a bold move, Saylor decided that allocating the majority of the company's reserves to Bitcoin was more prudent than holding cash reserves in the volatile global economy. This marked a watershed moment showing that public companies saw Bitcoin as a better treasury reserve asset.
Bitcoin is the "Highest Form of Property"
In an interview with Yahoo Finance, Saylor shared his view that Bitcoin is the best investment asset due to its superior qualities as a rare, decentralized form of digital property. He sees it as akin to other exclusive assets that dynastic families held for generations like land, noting that whoever accumulates the most Bitcoin will be in the strongest position decades from now. Saylor dismissed the notion of ever selling Bitcoin for fiat profits, instead aiming to acquire more over time.
A Vision for Bitcoin to Dominate the Next Century
Saylor projected that as more wealth migrates to digital formats, the total value stored in Bitcoin could grow exponentially to tens of trillions of dollars. He aptly described Bitcoin as a "city in cyberspace" with limited property blocks like rare digital real estate. With its fixed supply, Bitcoin is primed to hold value as demand grows over the coming decades. Saylor believes it will far outpace the returns of traditional assets like real estate, stocks or commodities. MicroStrategy's goal is to accumulate Bitcoin reserves prudently to secure the company's position as a top long-term HODLer.
While still in the early stages of mainstream adoption, successful companies like MicroStrategy aim to cultivate their position for the coming generations. Time will tell if Bitcoin does indeed grow to become the dominant wealth asset of the digital age, but under Saylor's leadership MicroStrategy is well poised. Their strategic view of Bitcoin as the best long term treasury reserve presents an intriguing case study for the decade ahead.
