• Michael Saylor is unconcerned about another ‘Crypto Winter.’

  • Although the price of bitcoin is falling, Michael Saylor has dismissed any notion that he is concerned about a potential “crypto winter.” The CEO of MicroStrategy remains upbeat, stating that ‘no one has ever lost money holding bitcoin for four years.’

    ‘I’m going to buy a lot more,’ says Saylor. bitcoin

    The highlight of the interview for crypto supporters came when Chang asked Saylor if he was feeling the chill of a potential crypto winter. Saylor made it clear to the host that he was in it for the long haul.

    “A short time horizon for investing in bitcoin is four years, and a [medium] time horizon is ten years.” “The right time horizon is forever,” Saylor said, proudly proclaiming his diamond-hand status. “Warren Buffet once said, ‘If you wouldn’t hold it for ten years, don’t hold it for ten minutes.'” No one has ever lost money holding bitcoin for four years if you look over the course of four years.”

    While Saylor is content to HODL, Chang pressed the CEO on why BTC is currently experiencing a downturn. Saylor identified a market friction point between bitcoin, which he describes as the “world’s least risky asset to hold over the next century,” and the broader crypto market, which he describes as the “world’s most volatile fast-money market.”

    “They’re both conjoined, joined at the hip in 2022, for better or worse,” he concluded.

    This, however, was insufficient to deter Saylor from expanding his bags.

    “Yeah, we’re going to buy more,” he replied to Chang.

    Michael, are you nervous?

    Chang asked Saylor, in a masterclass of pointed questioning, if holding so much bitcoin ever made the CEO nervous.

    “No, it actually gives me a lot of comfort,” Saylor said. “I don’t think there’s anything better we could do to position our company in an inflationary environment than convert our balance sheet to bitcoin, because we’ve built our balance sheet on a non-sovereign store of value that isn’t a currency derivative.”

    “Two years ago, we had a lot of cash, and that cash was losing around 10% of its purchasing power every year.” Then, after Covid struck and the Fed adopted a more accommodating monetary policy, that cash began to lose 25% of its purchasing power per year.”

    “My anxiety peaked around April-May 2020, when we had the K-shaped recovery and I realized that cash is trash – everything is about to become much more expensive, and we needed a strategy.” So we implemented a bitcoin strategy, which has increased our stock by a factor of five. It, in my opinion, saved the company from a less-than-pleasant fate. “I’m completely satisfied with where we are right now.”

    A K-shaped recovery is an asymmetric financial recovery in which some sectors resume growth while others remain stagnant. Following the recent economic downturn, which was exacerbated in part by COVID-19 mitigation strategies, some sectors of the economy, including technology and retail, have recovered. Other sectors of the economy, such as travel and hospitality, have struggled to find a way forward.

    The SEC has a say.

    While Saylor was extolling the virtues of bitcoin in terms of MicroStrategy’s stock price, the SEC was chastising MicroStrategy’s unconventional accounting practices.

    MicroStrategy has long advocated for the updating of American accounting standards, even going so far as to lobby the Financial Accounting Standards Board (FASB) in September 2021. The company specifically mentions ‘impairment charges’ that ‘cannot be reversed.’

    According to the MicroStrategy appeal, “as a result, subsequent increases in the market price of a digital asset are not reflected in the digital asset’s reported carrying value on an entity’s balance sheet.”

    “We take note of your response to prior comment 5, and we object to your inclusion of bitcoin impairment charges in your non-GAAP measures,” the SEC stated. “Please revise in future filings to remove this adjustment.”

    Following the announcement, the stock price of MicroStrategy (MSTR) fell precipitously. MSTR’s stock is currently trading at $401, down 17.59 percent from last week. Even if Saylor does not feel the icy chill of crypto winter, the rapid price drop suggests that he will find it much more difficult to ignore the SEC when it decides to turn up the heat.

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