$BTC Bitcoin winter won't return, says Saylor of MicroStrategy

Investing.com - The president of MicroStrategy (NASDAQ:MSTR), Michael Saylor, dismissed recent criticisms from a legendary short seller during an interview on Bloomberg TV on Tuesday, explaining his company's business model and his outlook on the future of Bitcoin.

Responding to Jim Chanos' short-selling recommendation on MicroStrategy's stock, Saylor stated: "I don't think he understands what our business model is. We are the largest issuer of Bitcoin-backed credit instruments in the world."

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Saylor explained that MicroStrategy recently raised $1 billion by selling preferred shares, which he described as "borrowed money that we never need to pay back, on which we pay dividends, but which we could suspend if necessary." This approach allows the company to buy Bitcoin without diluting common shares.

The CEO addressed Chanos' criticism that MicroStrategy's stock is trading at a premium to the value of Bitcoin, noting that the company "is not a holding company or a closed-end fund," but "an operating company" that can leverage Bitcoin and issue preferred shares.

"Our company generated a gain in BTC dollars equivalent to about $8.4 billion in the first two quarters of this year. That is equivalent to profits for a Bitcoin treasury company. Our goal for the year is $15 billion," Saylor said.