Michael Saylor: Will continue to acquire Bitcoin, will not face risks due to price fluctuations, the opportunity of hundreds of billions of dollars lies in Layer3
PANews reported on February 17th, according to Wu's report, Michael Saylor, the founder of Strategy (formerly MicroStrategy), said in an interview with the media: "We will continue to develop Bitcoin and regard it as a 'digital Manhattan' - a digital asset. We will continue to acquire Bitcoin and then use it as collateral to start other businesses. As the price of Bitcoin rises, we will continue to do similar things while also seeing new opportunities."
In addition, regarding the view that "MicroStrategy may face risks if its average purchase price for Bitcoin exceeds $150,000", Michael Saylor disagreed because most of the company's Bitcoins were acquired through equity. The Bitcoins owned by them serve as collateral which is 15 times their debt. Moreover, their debt is non-recourse with a term exceeding four years; meaning even if Bitcoin plummets by 98%, they would not face liquidation risk since what they own is permanent capital.
Michael Saylor stated that he does not focus on bitcoin price cycles and believes that over the next 21 years, bitcoin will rise an average of 29% per year; based on this benchmark, by 2045 each bitcoin would be worth $13 million dollars. He also mentioned that MicroStrategy won't lend or pledge bitcoins for interest in future and expects us to go from initially only having few companies adopting bitcoin standard developing into dozens or hundreds eventually thousands joining.
Regarding whether he would develop a second layer network for Bitcoin, Michael Saylor said his company would first observe market developments and believes MicroStrategy can be seen as already operating on three layers of Bitcoin. He stated: "In future solutions like Lightning might succeed but I believe current real billion-dollar opportunity lies at third layer." Regarding his views on other cryptocurrencies Michael Saylor said: "Why hold onto something second best? You just need one best thing and that’s what bitcoin is."
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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