The CEO of MicroStrategy, Michael Saylor, has shared a compelling insight on how companies can preserve capital and benefit their shareholders by incorporating Bitcoin into their financial strategies.
In a recent tweet, Saylor explained that businesses can utilize Bitcoin to improve their financial stability while steering clear of costly practices like acquiring other companies, buying back their own shares, paying dividends, or taking on debts.
Saylor also shared a clip where he appeared on CNBC’s “Squawk On The Street.”. In the clip, Saylor expressed his belief that as the cryptocurrency landscape continues to evolve, more companies will consider keeping Bitcoin in their reserve for the long term, which could potentially help enhance shareholder value.
Furthermore, Saylor mentioned a common problem in the business world, which he termed as the “Magnificent Seven”. He says that only seven companies have consistently delivered substantial returns to their shareholders, while thousands of others are struggling to do so.
Saylor went on to expound on the key to MicroStrategy’s success, according to him, the company’s success comes from their ability to manage their assets and financial gains effectively.
Notably, he highlighted the company’s approach of leveraging both its balance sheet and profit/loss statement, which currently encompasses around $5 billion in Bitcoin assets exhibiting remarkable growth at rates three to four times exceeding the cost of capital.
With over $5 billion in assets on their books, Saylor pointed out that Bitcoin’s value is growing faster than their borrowing costs.