Key Takeaways
Michael J. Saylor is a popular entrepreneur, business executive, and Bitcoin advocate. He is the co-founder and executive chairman of MicroStrategy.
Michael Saylor advocates bitcoin as a "digital gold" and leads MicroStrategy's crypto investments strategy. As of November 2024, the company holds more than 1.4% of the total BTC supply, with over 330,000 bitcoins.
MicroStrategy uses bold debt strategies, including convertible notes, to fund its Bitcoin purchases. Saylor's approach has driven institutional interest and influenced cryptocurrency market dynamics.
Who Is Michael Saylor?
Michael J. Saylor is a prominent entrepreneur, business executive, and Bitcoin advocate. Best known as the co-founder and executive chairman of MicroStrategy, Saylor has played a very important role in raising awareness and increasing corporate adoption of Bitcoin and blockchain technology. He also contributed extensively to MicroStrategy’s growth and development throughout the years.
Saylor was born in Lincoln, Nebraska, and attended the Massachusetts Institute of Technology (MIT) on an Air Force ROTC scholarship. He earned dual degrees in aeronautics and astronautics.
Saylor’s View on Bitcoin
Saylor often calls bitcoin the "apex property of the human race," saying it’s better than gold or any other traditional store of value. According to him, bitcoin is the most secure and portable asset you can own due to its resilience against inflation and government interference.
What Is MicroStrategy?
Saylor co-founded MicroStrategy in 1989, along with Sanju Bansal. MicroStrategy is a development company that offers business intelligence (BI), mobile software, and cloud-based solutions. The company went public in 1998 via an initial public offering (IPO). Its ticker symbol on NASDAQ is MSTR.
MicroStrategy and Bitcoin
Although MicroStrategy was, for many years, focused on producing software for data mining and BI solutions, the company became increasingly popular when it started investing in bitcoin as a treasury reserve asset.
In 2020, Michael Saylor made headlines when he decided to steer MicroStrategy into the world of cryptocurrency. At the time, the world was dealing with economic uncertainty due to the COVID-19 pandemic, and Saylor was concerned about inflation eating into MicroStrategy's cash reserves.
In August 2020, MicroStrategy purchased its first $250 million worth of bitcoin. Saylor justified the investment, stating that bitcoin is not just another digital trend but a "digital gold" that can protect wealth from inflation and offer long-term value. Since then, the company has kept buying bitcoins and now holds more than 300,000 BTC (more than 1.4% of the max supply).
Debt offerings to buy bitcoin
What really sets MicroStrategy apart from other companies dabbling in bitcoin is its bold strategy of using debt to fund its BTC purchases. The company has raised billions of dollars by selling convertible notes, which are basically IOUs that investors can later exchange for cash, MicroStrategy stock (MSTR), or a mix of both.
For example:
In late 2020, MicroStrategy raised $650 million and used it all to buy bitcoin. It followed up with more rounds of borrowing, including a $500 million secured note offering in 2021.
In October 2024, MicroStrategy announced its plan to raise $42 billion to buy more bitcoin over the next three years.
In November 2024, they announced the pricing of a convertible senior notes offering set to raise approximately $2.6 billion. The sale ended up raising $3 billion of notes with maturity to 2029.
As of November 2024, the company has issued six convertible notes, maturing from 2027 to 2032.
This strategy is seen by many as risky, but Saylor argues it’s worth it because bitcoin is the “scarcest asset” in the world. He compares it to owning “digital real estate,” emphasizing its resilience against inflation.
High reward, high risk
While Saylor’s strategy has been lucrative in bull markets, it also has inherent risks. MicroStrategy’s heavy investment in bitcoin means its financial health is closely related to bitcoin’s volatile price. For instance, when bitcoin’s value dropped in 2022, some worried the company might face a “margin call” on its loans, but it eventually managed to ride out the storm.
How many bitcoins does MicroStrategy hold?
As of November 2024, MicroStrategy holds 331,200 bitcoins, which are worth more than $32.5 billion. MicroStrategy acquired BTC throughout the years using a dollar-cost averaging (DCA) strategy. The 331,200 bitcoins were bought for roughly $16.5 billion, with an approximate average cost of $50,000 per BTC.
The Broader Impact of Saylor’s Bitcoin Advocacy
Institutional adoption
Saylor’s outspoken advocacy has had a ripple effect across the corporate world. By showcasing the feasibility of holding bitcoin as a treasury reserve, he has inspired other companies to explore cryptocurrency investments. Tesla, Square, and other firms have followed similar paths, lending legitimacy to bitcoin as an institutional asset.
Market Dynamics
MicroStrategy’s large-scale acquisitions have also influenced bitcoin’s market price. The company’s purchases often involve substantial volumes, occasionally causing price surges and heightened market activity. This highlights the growing role of institutional investors in shaping cryptocurrency markets.
Michael Saylor’s Net Worth
As of November 2024, Michael Saylor’s net worth is above $11 billion. Notably, MicroStrategy’s aggressive bitcoin purchases helped drive the MSTR stock up more than 450% in 2024.
Closing Thoughts
As cryptocurrencies become more integrated into mainstream finance, Michael Saylor is likely to remain a leading voice in the space. At MicroStrategy, the focus is clear: keep acquiring bitcoin and champion its potential as the future of money.
For Saylor, bitcoin is more than just a business strategy; it’s a belief in a decentralized financial system that can empower individuals worldwide. Whether you see him as a visionary or a risk-taker, there’s no denying that Michael Saylor is a prominent figure in the finance and crypto spaces.
Further Reading
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