MicroStrategy CEO Michael Saylor on Friday defended his enterprise software program firm’s debt-financed purchases of bitcoin, telling CNBC he sees shopping for the cryptocurrency proper now as similar to investing in Fb within the social community’s early days.
He stated:
“We’ve obtained $2.2 billion of debt and we pay about 1.5% curiosity, and we’ve a really very long time horizon,” Saylor stated on “Squawk on the Road.” “Our standpoint is being a leveraged, bitcoin-long firm is an efficient factor for our shareholders.
Should you borrow billions of {dollars} at 1% curiosity and make investments it within the subsequent Huge Tech digital community that you just thought was going to be the dominant Amazon or Google or Fb of cash, why wouldn’t you?” Saylor stated. “I imply, if I may borrow $1 billion and purchase Fb a decade in the past for 1% curiosity, I believe I might’ve carried out fairly properly.
Everyone is searching for this open approach to retailer worth and transfer worth on the pace of sunshine utilizing a pc chip and a cell phone,” Saylor stated. “You had Google. They created digital books. You had Fb; they created digital communications. Apple gave us digital music, and Amazon gave us digital retail. Bitcoin is digital property on an enormous tech, open financial community.
Our view is it’s solely a matter of time earlier than billions and billions of individuals have cell phones pugged into bitcoin, and we simply wish to be there first.”
