The Keynote speech at MicroStrategy World: Bitcoin for CorporationsMichael Saylor, MicroStrategy’s Executive Chairman, delivered a masterclass in corporate finance. He also discussed the use of Bitcoin to boost corporate balance sheets. Saylor, in his presentation, highlighted Bitcoin as the most important currency for corporate balance sheets. Singles Solution for Capital Appreciation in an Inflationary Environment
Saylor, in his address, compared capital costs to a benchmark a firm must meet to stay competitive. Increase your chances of success by contacting us today. Its purchasing power is argued to be the strongest argument. “Bitcoin is the only asset that exceeds the cost of capital. Another way to say that, is everything else is dilutive.”
The description of the It is a good idea to use a different language. He noted that capital costs are high. “S&P is the modern surrogate for the cost of capital… If you had to pick one metric and say, what’s the metric that gives you a sense of how rapidly the world currency supply is expanding in dollars? Probably the S&P 500… this is another way to see inflation.”
Saylor then went on to reiterate his belief, despite its general acceptance, that no asset, other than bitcoin, is a positive contributor to the corporate balance sheet. He highlighted in particular the relative underperformances of silver, gold, and US Government bonds.
“[If companies] invested in T-bills, they’re going to get 3% after tax against a 12% cost of capital per year. And so you hold $100 billion of capital, you destroy $9 billion of shareholder value a year… The story here is that the bonds don’t hold value, right? They’re awful capital assets. Silver doesn’t work. Gold doesn’t keep up with the cost of capital.”
The Best Crypto Asset is the Bitcoin
MicroStrategy’s executive chairman, David McIntyre, highlighted the differences and similarities between Bitcoin and other alternative currencies like Ethereum. proof-of-workCreate a digital product based on consensus.
“You could see the writing on the wall when the spot ETF of Bitcoin was approved in January. By the end of May, you’ll know that Ethereum is not going to be approved. And when Ethereum is not going to be approved, sometime this summer it’ll be very clear to everyone that Ethereum is deemed a crypto asset security, not a commodity. After that, you’re going to see that [for] Ethereum, BNB, Solana, Ripple, Cardano – everything down the stack.”
Saylor referred to the concept of energy efficiency when addressing the issue of Bitcoin’s use of electricity. “physical linkage to the real world” He described the network as having a consensus. He referred to the network’s consensus as being “raw digital power standing in the way of anybody that would try to undermine the integrity of the network… The network is feeding on electricity, and that creates a decentralizing dynamic that drives all of the network to the end of the grid in the quest of stranded energy.”
You’ll Never Stop Going Up
Saylor used physics-based analogies and his convictions when he discussed Bitcoin’s appreciation in price and its continued monetization. “It’s never declining. The chart’s not ever decreasing. It only goes one way. Bitcoin is a capital ratchet. It’s a one-way ratchet. Archimedes said, give me a lever long enough and a place to stand and I can move the world. Bitcoin is the place to stand.“
“There’s no more powerful idea than the digital transformation of capital… No force on earth can stop an idea whose time has come. This is an idea. Its time has come. It’s unstoppable. And so I’m going to end with the observation that Bitcoin is the best. The best what? The best.”
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Source: bitcoinmagazine.com
