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Is Michael Saylor’s side of the story the reality of the situation? Or is he on a damage control tour? The former CEO of MicroStrategy spent the day as a guest on what seems like every US financial show in existence, letting everyone know that the whole thing was his idea. Saylor chose his successor as CEO and named himself Executive Chairman to focus on the company’s bitcoin strategy. As usual, the mainstream media framed it differently.
With the price of bitcoin still down from last year’s highs, the mainstream media is not missing an opportunity to dive into the asset class. This time was no exception, as MicroStrategy’s average bitcoin purchase is around $30,000 and the current bitcoin price is around $24,000.
Even Bitcoinist joined the party. In addition to the bitcoin side, we said:
“According to a Bloomberg article citing data from financial analysis firm S3 Partners, a record 51 percent of the company’s shares are sold open at a notional value of $1.35 billion.
The analyst firm said the all-time high of 4.73 million shares shorted was up by 1.2 million shares in the past 30 days alone.”
Instead, since Saylor’s news hit the Internet, MSTR shares are up about $40. And that’s not even the juicy part of MicroStrategy’s bitcoin story.
MSTR price chart on NASDAQ | Source: TradingView.com
Michael Saylor TV Tour
The former CEO started the tweet of the day, “In my next job, I plan to focus more on Bitcoin.” A humorous monogram that contains a lot of truth. But Saylor’s day and tour were just beginning. His first stop was on CNBC’s Squawk on The Street, and in his tweet promoting his performance, Saylor wrote: “Since adopting a Bitcoin strategy, $MSTR has outperformed every asset class and major tech stock. With my taking over as Executive Chairman, the promotion of Phong Le to CEO, and the arrival of CFO Andrew Kang, our team is stronger than ever and we are full steam ahead.”
Since the adoption of a #Bitcoin Strategy, $MSTR it has outperformed every asset class and major tech stock. With my taking over as Executive Chairman, the promotion of Phong Le to CEO, and the arrival of CFO Andrew Kang, our team is stronger than ever and we are full speed ahead.pic.twitter.com/HSBjEgpizc
— Michael Saylor⚡️ (@saylor) August 3, 2022
According to Saylor, MSTR stock is up “123% through August 1st,” outperforming bitcoin itself, which is up 94% over the same time period. Not only that, but it also outperformed the S&P 500 and Nasdaq, which are both up slightly. and gold, silver and bonds, which have fallen. Besides, it doubled the growth of Google and surpassed Apple in the same period. And Amazon, Meta, and Netflix are down.
MicroStrategy is a hybrid company, Saylor continues. Their business intelligence and business software businesses have solid revenue and good cash flow. Bitcoin is just their cash reserve, and considering the inflation rates in almost every country on Earth, it’s amazing. According to Saylor, the asset is responsible for getting the company through this “difficult economic period” where “most currencies are crashing and most assets are struggling.”
About The Supposed Loses
Apparently, every TV host Saylor visited asked him about the $1 billion that MicroStrategy supposedly lost. MicroStrategy has not sold a single BTC so far, how can this be considered a loss? According to the CEO, it was just a “non-GAAP impairment charge for the quarter” and all shareholders knew it was coming. In the Bloomberg interview, Saylor described it as “an unspecified non-cash intangible loss.”
Michael Saylor at Bloomberg:#bitcoinpic.twitter.com/SZJXa2X4j8
— Neil Jacobs (@NeilJacobs) August 3, 2022
According on Investopedia, “a non-cash charge is an impairment or accounting charge that does not involve a cash payment. They can represent significant changes in a company’s financial position, weighing on earnings without affecting short-term capital in any way.” And these “reduce earnings but not cash flow.”
Either way, Saylor said “volatility is vitality,” and MicroStrategy embraces volatility.
Saylor on the company’s Bitcoin strategy
The name recognition that bitcoin brought to MicroStrategy cannot be bought. “They can’t really ignore us,” Saylor said. Bitcoin has been a “marketing and sales boon” and a “net positive” for the company. In fact, he calls it “a screaming homerun for shareholders.”
Finally, the host asks him what everyone was thinking. Does his resignation as CEO mean MicroStrategy can sell some of its BTC? Saylor’s response, “Our officers and directors are unanimously committed to the bitcoin strategy.”
Other TV appearances
By our count, Saylor was a guest on three of the mayor’s telecasts today alone. In all of these he told a similar story. However, he dropped new nuggets of information here and there. Sharing video of his visit to FOX, Saylor wrote: “Today Charles Payne and I laughed as we discussed the benefits of a Bitcoin strategy, the outperformance of $MSTR versus other stocks and asset classes, and my decision to take on the Executive Role president at MicroStrategy.”
Today @cvpayne and shared a laugh as we discussed the benefits of a #Bitcoin Strategy, its overperformance $MSTR versus other stocks and asset classes, and my decision to take on the role of Executive Chairman in @MicroStrategy. pic.twitter.com/OsxyWhBtPF
— Michael Saylor⚡️ (@saylor) August 3, 2022
The new information is that MicroStrategy adopted bitcoin only 2 years ago. At the time, the company was valued at $666 million. Since then, they’ve “added 5 billion to that number.” This means it has increased 730% in 24 months. Remember, this is the value of the company as a whole. The 123% increase we mentioned earlier refers to MSTR stock.
From @MicroStrategy adopted a #Bitcoin Strategic, its enterprise value is +730% (+$5 billion) and $MSTR is +123%. BTC performance is +94%, S&P 500 +23%, Nasdaq +13%, Gold -13%, Bonds -14%, Silver -29%. GOOG +54%, AAPL +43%, MSFT +34%, AMZN -14%, META -39%, NFLX -53%. pic.twitter.com/BWHPHbOg0d
— Michael Saylor⚡️ (@saylor) August 3, 2022
In the Bloomberg interview, Saylor was asked about this Tesla is selling 75% of its bitcoin. He responded that it was a sad day for Tesla, but immediately took it back and said it’s not his place to comment on other people’s business. Still, Saylor said, “acquiring and holding high-quality real estate forever is a good investment strategy. And bitcoin, in my opinion, is the best quality asset in the world.”
Featured Image: The ex-CEO, screenshot from this video | Charts by TradingView
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