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MicroStrategy CEO Michael Saylor Reveals His Bitcoin MSTR Plan

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1 month ago

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“It’s mostly paranoid crypto anarchists that say that.”

With these eight words, issued on the “Markets with Madison” podcast, Microstrategy CEO Michael Saylor evoked outrage from just about everyone in Bitcoin. 

Shinobi called him a “spook.” Carvalho was confused. Svetski claimed this will start the next Fork Wars.

Put simply, Saylor said a bad thing. He broke the taboo. He said you’re better off trusting your Bitcoin in state custody than holding your own private keys, then went further, calling out all of the businesses engaged in custody projects by calling them effectively bullshit salesmen.

It was, shall we say, a “big oof,” a “footgun,” the scene in the cartoon where the hero gets hit with an anvil. 

Here’s Adam Simecka’s clip from the full video:

Yet, paradoxically, I’ll admit, it’s probably the most interesting thing Saylor has ever said?

For years, Saylor and the Cyber Hornets have been “Grut and the Minions,” Saylor using his pulpit to spout whatever bullish nonsense was in vogue, without adding anything of his own.

Other people said things, and then Saylor said them again. He was the “people’s champion,” a “man of plebs,” a role that even his mundane AI generated tweets seemed to underscore in tagging the artists, invariably some random pseudonym.

So, anger aside, I have to say, at this time, I’m undecided. Sure, as someone who lived through the Fork Wars, I find Svetski’s position romantic (It’s nice to think we’re in the midst of some larger struggle), but it’s perhaps too early to cry wolf.

Instead, I find myself (for once) actually trying to understand what Saylor is saying.

As far as I can tell, there’s really three ideas at play here:

  1. This is a new thesis for how to boost Bitcoin adoption using public markets – Saylor is framing the self-custody question as not an issue to solve with innovation, but an issue to ameliorate. His view: It doesn’t matter how people own Bitcoin, only that they do. His preferred vehicle for this is the stock market, and he seems to want to co-opt it as a massive vehicle for buying Bitcoin and selling the exposure.
  2. This thesis actually might solve the problem of how to fight the crypto market – This is also one of the more compelling things about Bitcoin “Season 2,” the idea you could “co-opt the crypto apparatus” as a means of getting retail involved. Here, Saylor seems to want to marshal his army of Bitcoin stocks for the purpose, his view retail will begin purchasing Microstrategy and Metaplanet, in lieu of memecoins, chasing as they always do, beta on Bitcoin.
  3. It’s a novel thesis on convincing government to adopt Bitcoin – A world where Bitcoin is the reserve asset for regulated entities seems like one in which draconian laws become less viable. After all, in this world, Bitcoin would have a direct link to the U.S. economy (at least the version most politicians care about). You have to admit: “You can’t ban Bitcoin, it will hurt the stock market,” has a nice ring.

Of course, maybe the commentators are right. Saylor’s incentives seem to be departing from the network. Maybe he is placing his company and its quest to amass Bitcoin above all else, and it’s worth questioning his motives at this moment.

Some argue self-custody, if nothing else, is the core of Bitcoin, the fact that you can trust no one but yourself to hold and safeguard your wealth.

Then again, in Saylor’s view, inflation is the true boogeyman, the debasement of purchasing power, the far bigger issue.

Is it possible this is a giant government psy-op, that Saylor flew too close to the sun, and there are an army of regulators who are twisting his arm to say this? 

Sure, Microstrategy does work with intelligence agencies, but even then, intelligence agencies and their pension funds need somewhere to invest. A hyperbitcoinized world is surely one where these funds will also buy Bitcoin.

But I have to say, as someone who has never found Saylor very interesting… for now, I’m at least paying attention. 

I’ll start there.

This article is a Take. Opinions expressed are entirely the author’s and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.





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The Chart That Shows Bitcoin’s Bull Run Won’t Stop at $100,000

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2 hours ago

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November 21, 2024

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Peak Bitcoin, hardly.

Follow Rizzo on X.

https://x.com/pete_rizzo_/

As I wrote in Forbes in 2021, the world is waking up to a new reality in regards to Bitcoin – the unlikely truth that Bitcoin’s programming has cyclical effects on its economy.

This has led to at least 4 distinct market cycles where Bitcoin has been branded a bubble, skeptics have rung their hands, and each time, Bitcoin recovers more or less 4 years later to set new all-time highs above its previously “sky-high” valuation.

I personally watched Bitcoin go from $50 to $1,300 in 2013. Then, from $1,000 to $20,000 in 2017, and I watched it go from $20,000 to $70,000 in 2021.

So, I’m just here to relate that, from my past experience, this market cycle is just heating up.

For those who have been in Bitcoin, there’s one tried-and-true and that’s Google Search. As long as I’ve been in Bitcoin, this has been the best indicator of the strength of the market.

Search is low, you’re probably in a bear market. Search heading back to all-time highs? This means new entrants are getting engaged, learning about Bitcoin, and becoming active buyers.

Remember, this is a habit change. Bitcoin HODLers are slowing shifting their assets to a wholly new economy. So, Google Trends search then, represents a snapshot of Bitcoin’s immigration. It shows how many new sovereign citizens are moving their money here.

And it’s something that all who are worried about whether bitcoin’s price topping out in 2024 should pay attention to.

Last year was the Bitcoin halving, and historically, the year following previous halvings has led to price appreciation. Maybe you’re tempted to think, “this time is different” – not me. I look at search and I see a chart that continues to accelerate into price discovery. Trust me when I say no one I know is selling bitcoin.

As shown above, buyer interest is accelerating, and these new buyers have to buy that Bitcoin from somewhere. Add nation states, US states, and a coming Trump administration set to ease the burden on the industry?

Well, I think the chart above says it all really. 

This article is a Take. Opinions expressed are entirely the author’s and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.



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Bitcoin Nears $96K, Continuing Wild ‘Trump Trade’ Rally

Published

14 hours ago

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November 21, 2024

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BTC traded above $95,900 in early Asian hours, less than 6% from a landmark $100,000 figure that would push it above a $2 trillion market capitalization.



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Bitcoin Boosts MicroStrategy (MSTR) to Higher Trading Volume Than Tesla and Nvidia

Published

22 hours ago

on

November 20, 2024

By


Follow Nikolaus On X Here

Today, MicroStrategy (MSTR) surpassed a $100 billion market cap to become the 93rd largest publicly-traded company in the U.S.

At the time of writing, MSTR has done more trading volume than both stock giants Tesla and Nvidia today, and has traditional stock traders like the Wall Street Bets community losing their minds.

 This is absolutely mindblowing considering MicroStrategy was a mere $1 billion company when it first bought bitcoin for its treasury about four and a half years ago.

MicroStrategy’s market cap from when they first bought Bitcoin to now

The big question I’m asking myself is, how and when does this end? Assuming MSTR continues to pump until the peak of this bull market, it’s anyone’s guess on how high MSTR may go.

But how hard will it crash in the bear market, considering it is essentially a leveraged trade on bitcoin? Dare I even suggest that this time may be different, and that the downside of the next bitcoin bear market won’t be as brutal as the 70%+ corrections we’re historically used to seeing?

Even with the spot bitcoin ETFs, and the notion that the US may lead the charge of nation states buying up mass amounts of bitcoin, I’m still not convinced that we don’t eventually see a massive downturn in bitcoin’s price. And I’m mentally preparing for a normal bitcoin bear market to commence after this bull market finishes sometime in the next year or so.

But back to MSTR — Michael Saylor has thus far proven that the Bitcoin for Corporations strategy works in stunning fashion. Public companies have been coming out of the woodwork this past week announcing that they’ve purchased bitcoin for their balance sheet or plan to do so, and it seems this trend will continue as the CEO of Rumble asked his X audience if he should add BTC to their balance sheet (almost 94% of his 42,522 voters voted “yes”).

 Michael Saylor even offered to help explain how and why Rumble should adopt a corporate BTC strategy.

Institutional bitcoin adoption is here and it’s only going to grow for the foreseeable future. As companies figure out the logic behind adopting bitcoin as a strategic reserve asset, the number of publicly-traded companies that adopt this strategy is going to explode.

Companies that add bitcoin to their balance sheet will rise above most other companies — even top big tech giants — in terms of trading volume, as MicroStrategy has, until all companies add bitcoin to their balance sheet. I try to put myself in the shoes of a trader, with knowledge on Bitcoin and think to myself, “Why on earth would I buy any company’s stock if they don’t have bitcoin on their balance sheet?” I wouldn’t — it would be way too boring.

Putting BTC on the balance sheet helps create volatility, and therefore opportunity for stock traders, which is good for the traders, stock price, and company overall. If you are a publicly-traded company, it is a no brainer to adopt bitcoin as a treasury reserve asset.

This article is a Take. Opinions expressed are entirely the author’s and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.





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