MicroStrategy CEO Says It Won't Sell Its $5 Billion Bitcoin Reserve Even During Crypto Winter

MicroStrategy's Michael Saylor has publicly stated that he has no intention of selling his company's $5 billion worth of bitcoin assets despite the 40% price drop.

MicroStrategy's Michael Saylor has publicly stated that he has no plans to sell his firm's $5 billion bitcoin reserves despite a 40% drop in the price of bitcoin (BTC).

Saylor told Bloomberg that even if BTC suffers a prolonged bear market, he will be a staunch “Bitcoin bull” and has no plans to alter MicroStrategy’s multibillion-dollar BTC acquisition plans. He took a firm stance on cashing out with BTC:

"Never. No, we're not sellers. We just buy and hold bitcoin, aren't we? That's our strategy."

MicroStrategy became the first public company in the United States to acquire and hold Bitcoin as part of its balance sheet in August 2020. Since then, the business software maker has amassed around 124,391 BTC, worth around $5.2 billion at current market prices.

With a large portion of its balance sheet occupied by cryptocurrencies, the company's stock has become a means of gaining exposure to "digital gold." MicroStrategy's stock skyrocketed as much as 900% after announcing its foray into BTC; however, more recently, its collateral has struggled following revelations of an over-buying incident partly funded by borrowed funds.

Since August 2020, MicroStrategy has continuously increased its Bitcoin position, fulfilling its promise to buy more Bitcoin. Late last year, MicroStrategy purchased 1,914 BTC for $94.2 million between Dec. 9 and Dec. 29, bringing its total to 124,391 BTC.

Despite Bitcoin's recent struggles, Saylor still sees BTC as one of the best alternatives to inflation hedges and stock buyback events. He dismissed concerns that the cryptocurrency fell from an all-time high of $69,000 in November to less than $40,000 this month, saying that with inflation so high, the company’s assets are actually a source of “huge comfort.”

Saylor, who previously referred to cash as "melting ice," expects more Wall Streeters to buy BTC at current prices, describing it as "a great entry point for institutional investors."

MicroStrategy
cryptocurrency
bitcoin