By
Chimamanda U. Martha
April 24th, 2024
Saylor opined that every company on earth has some amount of treasury assets and as such, they should be able to establish a Corporate Bitcoin trove.
Michael Saylor, the CEO of MicroStrategy, has revealed the intricate details of how corporate organizations can invest in Bitcoin to avoid the financial pitfalls that would come with fiat currencies. He made this revelation at a virtual pro-Bitcoin conference his firm had set up in its bid to draw more institutional investors to the crypto asset.
According to Saylor, the macroeconomic might soon be facing some challenges that would come to affect the $400 trillion capital. And because most of this capital is in fiat currencies, they are prone to the rising inflation rates that is primarily caused by the authorities’ tendency to mint new currencies out of thin air. He believes that the capital would want to convert into strong money.
This leaves institutions with two options of either de-capitalizing or re-capitalizing with an asset that is appreciating faster than the monetary supply expansion rate. This asset, he adds, is Bitcoin which he believes would someday be able to overthrow the dollar from its global reserve status.
Saylor, during his hour-long speech, focused on business strategies and procedures that would make corporate institutions rethink their stance towards Bitcoin. His goal and focus remain to draw more investors, both retailers and institutions, into the crypto world that caught his attention during the pandemic which had a debilitating effect on the world’s economy.
The MicroStrategy CEO also warned these corporate bodies against “fiat derivatives” like bonds, stocks and real estate. According to him, these treasuries are just taking the place of fiat currencies as whatever returns they bring would only be in the devalued currency. The only solution to this would be for them to convert all of these into Bitcoin.
Saylor opined that every company on earth has some amount of treasury assets and as such, they should be able to establish a Corporate Bitcoin trove. This can be done through debt raises, equity issuances and cash flow conversions that are viable balance sheet strategies.
Companies looking to approach BTC from a business perspective also got some advice from the pro-crypto executive. Saylor calls on them to develop Bitcoin tools or build Bitcoin softwares, or even offer Bitcoin services like providing Bitcoin infrastructure and others. These definitely would help the business build revenue and drive the cash flows of the firm.
Phong Le, the president of MicroStrategy, also highlighted some of the challenges that these firms would face in their adoption of Bitcoin. He was ably assisted by Jeremy Price, the financial planning executive who stated that the adoption was a process that was going to take time but eventually it helps to “change how you look at your business strategy.”
The legal team also gave a presentation on issues of corporate governance, regulatory concerns and policies that could affect the integration of the crypto asset. With the lawyers doing their best to remind participants to be wary of OFAC sanctions violations.
MicroStrategy currently owns over 70,000 units of BTC which is worth well over $1 billion. The firm has remained committed to adopting Bitcoin as its treasure reserve asset and appears bent on drawing more corporate institutions into the crypto shaped boat.