MicroStrategy's Bitcoin Success

Michael Saylor shares how MicroStrategy's transformation to a Bitcoin strategy solved multiple business challenges.

"When we had $500 million in cash in the bank generating zero interest and the cost of capital went to 25%, all the public company investors started forsaking the company. When the stock market forsakes you, mainstream media forsakes you. Then the employees become dejected because eventually Facebook, Amazon, Apple, or Google will steal every one of your employees if you can't drive the stock up.

Nobody wants to invest in a company growing at 5% a year. If we had a sound money policy in this country, you could hold your head up high and say 'I run this great restaurant, we made money last year, we'll make money this year.' But when I'm devaluing cash by 20-25% a year, you're driven into this cycle where you either have to do big acquisitions to keep revenues growing, take extreme risk with dilutive acquisitions, or borrow a billion dollars to buy stock back.

Now the company has $5 billion in assets. If we print 20% more money next year, I can reasonably expect to generate $1 billion in investment income. Meanwhile, 2,000 people doing 100,000 things perfectly for an entire year competing against Microsoft can only generate $75 million. The company's future became secure when we converted the balance sheet to Bitcoin because now we don't have to struggle."