How Microstrategy CEO Turned “Scary” Bitcoin Investment Into More Than $250 Million

Key Takeaways

  • Saylor states that the economic crisis of 2020 caused hyperinflation of major assets.
  • “Bitcoin is about digital scarcity,” says Saylor.
  • He believes that cash is losing value at a pace far greater than the media reports.

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Michael Saylor, CEO of Microstrategy, recently made headlines for revealing that he personally owns $245 million worth of Bitcoin. His company’s stash is nearly double that. 

Under Saylor’s leadership, Microstrategy Recently increased its BTC holdings by $175 million to a whopping $425 million. 

But why the big bet? The pandemic, of course. 

More importantly, how this pandemic, and its economic fallout, has changed the world of money forever.

Stocks Are Now Hyperinflated. Cash Will Become Worthless

Saylor states that while the nominal rate of monetary inflation is zero, the pandemic caused hyperinflation of assets. This wasn’t reported in the news, however. 

Because central banks like the ECB and Federal Reserve have been increasing the money supply to stimulate the economy, the value of stocks and their companies has seen a major decoupling. 

SIMETRI small cap big gain

“Every asset that represented the value of an entity was going up in value, while the actual value of the entity was going down,” explains Saylor. “The nominal inflation rate is zero, but the asset inflation rate is 15%.” 

The Microstrategy CEO pointed out that Apple stock has somehow doubled despite flat revenues. With rampant asset inflation and plummeting cash value, Saylor sought alternative assets to preserve his wealth.

At first, Saylor was skeptical of Bitcoin, saying it felt “scary.” 

However, he soon changed his mind, concluding that it was more efficient than gold or any other asset as a store of value. 

Saylor Has Invested Hundreds of Millions in Bitcoin

Since this realization, Saylor directed his company to buy $425 million worth of Bitcoin in total. He also personally holds over 17,000 BTC. 

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