- Michael Saylor described fiat as a melting asset and chose Bitcoin to protect MicroStrategy’s $500M balance sheet.
- He compared Bitcoin’s fixed supply to a fully diluted share count, calling it superior to gold and real estate.
- Saylor revealed MicroStrategy’s Bitcoin buying strategy involves OTC trades, algorithmic precision, and strict custodial security.
Michael Saylor, Executive Chairman of MicroStrategy, appeared on Real Vision to explain the thinking behind his company’s pivot to Bitcoin. In a wide-ranging interview, he discussed fiat currency, gold, asset inflation, and how MicroStrategy ended up investing over $500 million in BTC. Speaking to host Raoul Pal, Saylor called Bitcoin the only asset capable of preserving value across a century, describing it as “a steel-hull freighter” compared to fiat’s “inflatable raft” and gold’s “rotting wooden ship.”
“I Was Sitting on a $500 Million Ice Cube”
Saylor began by detailing his growing concerns over the U.S. dollar. He described fiat cash as a melting asset, losing 6% annually in good years and up to 25% during inflation spikes. As CEO of a public company, he realized investors didn’t value his firm’s large cash reserves. Instead, they viewed the capital as deteriorating, pushing him to act.
“The real yield on my cash was negative 25%,”
he said.
“It was like someone opened the gate to my backyard and burned 2% of it every month.”
Bitcoin Emerged After Every Other Door Closed
Facing that reality, Saylor started researching alternatives. He looked at real estate, gold, bonds, and equities—but dismissed each one. He explained that property taxes would eat up real estate. Bonds locked in subpar returns. Stocks carried equity risk. Gold, he argued, was slowly losing purchasing power due to a 2% annual supply inflation.
Eventually, Bitcoin stood out.
“If I’m handing $100 million to my successor 100 years from now, I want to use the best asset. Bitcoin is the only thing that holds up,”
he said.
“Fully Diluted Bitcoin Supply Is All That Matters”
Saylor pushed back against critics who cite Bitcoin’s gradual release schedule. He said investors should view Bitcoin the way public markets view stocks—based on fully diluted supply.
“No one asks me how many shares vest next month. They just want the fully diluted count,”
he said.
“And for Bitcoin, that’s 21 million. Period.”
From Gold to Bitcoin: Commodity Supply Responds to Price
Saylor explained that gold does not preserve value in the long term because its supply increases with demand. “Every miner becomes your enemy,” he said.
“The more successful gold is, the more capital floods in, increasing supply and reducing returns. That’s how commodities work.”
Bitcoin, by comparison, has a fixed supply limit. Its code restricts issuance to 21 million coins, making it resistant to inflation from increased production.
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He described Bitcoin as a decentralized system supported by energy-intensive mining.
“It’s a cybernetic hive, protected by a wall of encrypted energy,”
he said. He argued that Bitcoin functions as a network protocol for value storage, in contrast to other crypto assets.
Saylor also commented on Ethereum, saying its ongoing development and planned changes created uncertainty. He stated that Ethereum lacked the fixed structure and consensus model of Bitcoin.
MicroStrategy’s Bitcoin Acquisition Strategy
Saylor outlined how MicroStrategy conducted Bitcoin purchases. The company used OTC brokers and automated systems to divide large transactions into smaller parts. They whitelisted all wallet addresses, tested transfers with minimal amounts, and followed strict handling procedures.
“I’m not chasing prices. I wait for fear. When someone panics, I’ll buy $10 million worth in one minute,” he said.
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Saylor used an analogy to compare different asset classes. He likened fiat currency to an inflatable raft, gold to a wooden ship, and Bitcoin to a steel vessel. According to him, Bitcoin’s structure made it better suited for storing value over time.
He concluded that Bitcoin was the only asset he considered capable of preserving purchasing power across decades.
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