Saylor: "There will be no net selling of Bitcoin"

▲ Bitcoin, Michael Saylor/ChatGPT generated image

Michael Saylor stated his position on the controversy surrounding the possibility of MicroStrategy selling Bitcoin (BTC), saying, “I will not be a net seller.” Saylor emphasized that even if some Bitcoin were sold, the structure would involve buying back significantly more Bitcoin, and the company's core accumulation strategy has not changed.

U.Today reported on the 10th that shock spread through the market after MicroStrategy co-founder Saylor mentioned in a recent earnings presentation that the company might sell some of its large Bitcoin holdings. Saylor later explained in a new interview that even if the company sells some Bitcoin, it will ultimately buy significantly more.

The core of the controversy lies in the difference between Saylor's long-emphasized statement, “Don't sell Bitcoin,” and the realistic operating principles of corporate governance. Saylor acknowledged that he is famous for saying, “Never sell Bitcoin,” but clarified that the more accurate expression was, “Don't be a net seller of Bitcoin.” He explained that the market reacted more strongly because this phrase was not as popularly strong as the previous slogan.

Saylor stated that MicroStrategy could pursue larger Bitcoin purchases through targeted sales if necessary. He said, “If we sell one Bitcoin, we will buy 10 to 20 more,” explaining that the structure effectively involves buying 10 Bitcoins and selling 1, resulting in a net increase of 9. He clarified that this means selling is not an abandonment of the accumulation strategy but rather a method of capital management for larger purchases.

Saylor likened MicroStrategy's actions to infrastructure reinvestment by traditional tech companies. He argued that if Google invests $1 billion in data centers to create $10 billion in business value, the dollar market doesn't collapse, and it's rational for companies to spend money to generate greater returns. He suggested that MicroStrategy's goal of expanding its Bitcoin holdings by utilizing some assets is in the same vein.

Peter Schiff has often criticized Saylor for running a Ponzi scheme. He argued that MicroStrategy would eventually have to collapse its STRC dividends or Bitcoin itself. In response, Saylor countered that Schiff views Bitcoin as a Ponzi scheme and that if Bitcoin is not recognized as a legitimate asset, then the derivative structures built upon it also cannot be recognized.

Saylor defined Bitcoin as “digital capital” and asserted that MicroStrategy has created a digital treasury company that issues stocks and credit products to acquire capital. Although market concerns grew due to the mention of potential sales, Saylor re-emphasized that MicroStrategy's fundamental direction is to expand its Bitcoin holdings.

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