Michael Saylor, the most staunch evangelist of Bitcoin, was interviewed by Bonnie Blockchain and talked about the logic behind MicroStrategy’s massive investment in Bitcoin. In fact, it is essentially a method of financial engineering. He believes that since Bitcoin has scarcity and will rise in the long term, He can turn the company into a 1.5x leveraged Bitcoin asset share. Provides a leveraged option for those who want to invest in high-volatility BTC.

The risks are also very clear. Fluctuations in currency prices also have the risk of returning to zero. But instead, he said that fluctuations are a sign of vitality, so that risk-seeking people will want to invest in you more. People without faith will look extremely crazy on the outside, but for believers who think they understand the nature of Bitcoin, these are rational choices.

----Excerpts from the interview----

#RethinkthenatureofAssets

Saylor's thinking process is very systematic. He found that traditional commodity assets all have a common problem: they are not truly scarce. What's more, they tend to underperform the S&P. However, Bitcoin breaks this rule.

"Bitcoin is the only truly scarce commodity in the world, and it is also the only digital commodity asset without an issuer." This feature not only brings investment advantages, but also provides regulatory advantages for listed companies. According to regulations, securities holdings in a listed company's balance sheet cannot exceed 40%, but commodities are not subject to this restriction.

#Volatilityredefined

In traditional financial theory, volatility is often equated with risk. But Saylor made a breakthrough point: "Volatility is not a risk, but a display of vitality." He used a jet engine as an analogy: "If you want to fly from New York to Tokyo, the high temperature generated by the engine is necessary. Likewise , volatility is the necessary energy if you want to achieve excellent investment returns.”

“MicroStrategy four years ago had a market cap of $1 billion, an enterprise value of $666 million, and $500 million in cash. We moved to Bitcoin and raised $9.75 billion in 48 months, growing our enterprise value from $666 million. to US$55 billion, and the stock price has risen from US$9 during the epidemic to more than US$220 now.”

to be continued