- MicroStrategy Inc narrowed its bitcoin-related loss in the first quarter.
- Its executive chairman Michael Saylor remains bullish as ever on bitcoin.
- Bitcoin is currently up roughly 70% versus the start of the year 2023.
Bitcoin has lost about 7.0% in recent weeks but Michael Saylor – the Executive Chairman of MicroStrategy Inc remains convinced as ever in its long-term potential.
Michael Saylor on MicroStrategy’s Q1 results
Earlier this week, the Nasdaq-listed firm said impairment loss related to its bitcoin holdings narrowed more than 90% sequentially to $18.9 million in the first quarter. According to Saylor:
Bitcoin is the ultimate digital scarcity network. It’s moved up about 50% on average over the last three years. The key with bitcoin is to be able to hold on to it and stomach the volatility.
MicroStrategy now owns a total of about 140,000 bitcoins. Naturally, therefore, the recent surge in BTC that’s still up some 70% for the year has been a meaningful tailwind for the company.
“MSTR” has more than doubled since the start of 2023.
Why is bitcoin price on the rise this year?
Saylor attributes strength in the price of bitcoin this year partially to inflation that’s still running at an annualised rate of 5.0% in the United States – well above the Fed’s 2.0% target.
The recent bank failures, he added, have also hurt confidence in the fiat currencies. On CNBC’s “Closing Bell: Overtime”, Saylor said:
Bitcoin is a bank in cyberspace run by incorruptible software. So, the phase be your own bank has emerged as an investment idea in the United States.
Interestingly, he dubbed the ongoing crypto crackdown a benefit for bitcoin as well since it has established a reputation as the safe-haven asset.