Digital Assets: “An Ocean Of $250T In Assets Will Move To The Bitcoin Pond”

October 27, 2020 | Digital Assets, News

That’s a characteristic quote from MicroStrategy’s CEO Michael Saylor.

In a webcast with Hedgeye CEO Keith McCullough last week, Saylor described the bitcoin network as “a thing of beauty and extraordinary value,” and “the first network in the world that can pull monetary energy.” (

NASDAQ-listed MicroStrategy (NASDAQ: MSTR) made waves in August and September when it invested $425 million of its reserves in bitcoin in two tranches of $250 million and $175 million respectively.

At the time Saylor said: “This investment reflects our belief that bitcoin, as the world’s most widely-adopted cryptocurrency, is a dependable store of value and an attractive investment asset with more long-term appreciation potential than holding cash.”

Saylorspeak on tech

On the webcast Saylor was frank about his penchant for investments in technology-backed businesses. In words that rang the “forever” bell from Buffett-style investing, Saylor said of tech investing: “If you’re right, own it, hold it, and wait.”

He observed that an investment in either of Google (NASDAQ: GOOGL), Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), or Facebook (NASDAQ: FB) at any point between 2010 and 2020 would have paid off in spades over the long term.

“I think it’s impossible to have lost money at any point for the decade … your investment mistake would be trying to time the market on those things.”

Saylorspeak on bitcoin versus other assets

But Saylor made an important distinction on Apple. He pointed out that the company faced regulatory, competitive and execution risks and shareholders faced dilution risk. “The truth is that Apple’s stock is not scarce.”

There was a similar broadside against gold.

“If you put $100 million into gold and the gold miners print 2% to 3% more a year, let’s say 2% more, well, over 100 years you lose 88% of your purchasing power.”

Vast ocean of assets

Saylor then referred to the trillions of dollars worth of assets that investors hold in so-called stores of value – such as gold, tech stocks and bonds – hardly the best investments in the current economic scenario.

“There’s a $250 trillion ocean of assets,” he said. “They are looking for the ideal store of value right now.”

Note that another listed company, Jack Dorsey’s Square (NYSE: SQ) invested $50 million in bitcoin earlier this month citing “the rapid evolution of cryptocurrency and unprecedented uncertainty from a macroeconomic and currency regime perspective.”

Bitcoin the perfect store of value

“Bitcoin is digital gold. It’s better gold than gold and it’s a better store of value than big tech.”

“A lot of that monetary energy is going to flow from the asset ocean into the crypto pond and everybody that makes the transition is going to benefit.”

Related Story:   Nasdaq-listed Company Microstrategy Bets $250M on Bitcoin

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