Michael Saylor, co-founder of MicroStrategy, is sticking it to his critics, and he’s got Bitcoin on his side. “No one’s ever lost money over the course of four years holding Bitcoin,” he declared recently in an interview.
His point was that BTC isn’t some get-rich-quick schtick. It’s something you get into only when you wholeheartedly believe in its long-term potential. You need faith, you need patience, and most of all — you need vision.
He quoted legendary investor Warren Buffett to say, “If you can’t hold it for ten years, you don’t deserve to have it for ten minutes.”
Michael Saylor claps back at WSJ
Shortly after, Saylor took to X, formerly Twitter, to fire shots at the Wall Street Journal (WSJ) too, which in 2022 painted his Bitcoin strategy as reckless, even calling it a risk that could blow up in MicroStrategy’s face.
That article came out at a time MicroStrategy had just reported a whopping $1.44 billion loss, and its stock had plummeted by nearly 50%. Back then, Saylor had stepped down as CEO, and Bitcoin was sitting at around $20,000 after the Terra crash.
Financial analysts, seizing the opportunity, warned that MicroStrategy might not make it out alive if Bitcoin’s price didn’t bounce back. They even predicted that Saylor’s massive Bitcoin play would ruin the company entirely.
Then came the FTX collapse, and Bitcoin tanked even lower, dropping to $16,000. It looked like Saylor was sitting on a mountain of losses and could take MicroStrategy down with him. But 2024 had other plans.
MicroStrategy rides the Bitcoin wave to new highs
Bitcoin’s price has surged over 115% so far this year, with MicroStrategy’s stock soaring more than 400% in the same timeframe. The company holds around 214,000 Bitcoin, valued at over $7.4 billion.
It’s one of the largest corporate Bitcoin holders in the world. Saylor has hinted at future plans that could see the company’s holdings skyrocket to as high as $42 billion.
For a company once known as a modest enterprise software maker, MicroStrategy has become a Bitcoin giant, outperforming most major U.S. stocks, including AI heavyweight Nvidia.
And MSTR has seen an over 1,700% increase since it started accumulating Bitcoin. Bitcoin is now worth more than 200% over MicroStrategy’s underlying assets.
Analysts’ concerns over valuation and financial woes
But not everyone’s cheering from the sidelines. Some analysts are beginning to wonder if this Bitcoin-fueled growth can keep up. They’re looking at MSTR and they’re not convinced it’s sustainable.
Sure Bitcoin’s price is up, but MicroStrategy’s actual revenue is down, and the company’s cash flow has been tight. These same analysts expect MicroStrategy to post another quarterly loss, its third in a row.
Enter Vitalik Buterin, creator of Ethereum and a major voice in the crypto community. Buterin recently clashed with Saylor’s views on Bitcoin custody.
In an interview, Saylor suggested that Bitcoin holders should consider using big banks for custody, a move that Buterin called “batshit insane.” In a heated response on social media, he slammed Saylor’s suggestion, making it clear he doesn’t want traditional institutions controlling crypto assets.
“I probably did more than most to spread the ‘mountain man’ trope,” Buterin said, adding, “I think Saylor’s comments are batshit insane.” He warned that giving regulated entities like BlackRock and Fidelity control over Bitcoin could weaken the principles that crypto was built on.
