MicroStrategy CEO Michael Saylor is facing questions on his role in Elon Musk’s billion-dollar bet on Bitcoin.
In a new CNBC interview, Saylor says he’s not allowed to divulge what he knows about Tesla’s decision to add Bitcoin to its corporate treasury.
[adinserter block="1"]“There are business rules regarding how public company officers are allowed to communicate to the public. So I’m constrained in what I can say but you know what we said on Twitter and you know what I’ve been saying all along which is it’s a great idea.”
Musk sent shockwaves throughout the cryptoverse yesterday after announcing that electric vehicle maker Tesla purchased $1.5 billion worth of BTC.
Musk and Saylor had a public exchange on Twitter in December about BTC, with the MicroStrategy CEO offering to “share his playbook” offline.
Are such large transactions even possible?
— Elon Musk (@elonmusk) December 20, 2020
When asked about the risk Bitcoin’s volatility presents to businesses, Saylor says that companies should look at the long-term performance of the leading crypto asset against the US dollar.
“Companies that are converting their dollars into Bitcoin are taking a non-performing asset, and they’re turning it into the best-performing asset. Bitcoin’s been appreciating at something like 230% year after year after year for a decade, and so this is part of the digital transformation that’s taking an analog monetary asset and converting it into a digital asset, and ultimately over the long term, that’s going to be good for the business…
If you take the long view over the decade, you’re going to have either a stable loss of 75% of your shareholder value if you hold the money in cash, or you’re going to have a volatile appreciation that may very well be doubling every six months. I’d rather have a volatile appreciation at 200% a year than a stable depreciation at the rate of 15-20% a year.”
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