MicroStrategy CEO says, “now is an ideal time to purchase more Bitcoin”, why so?

Following the current market turmoil, business intelligence firm MicroStrategy is currently sitting on an unrealized loss of over US$1 billion on its Bitcoin investment. However, MicroStrategy CEO Michael Saylor remains bullish on the leading cryptocurrency, noting that now is an ideal time to purchase more BTC.

MicroStrategy Not Bothered With US$1B BTC Loss

During an interview with CNBC on Wednesday, Saylor noted that MicroStrategy is not bothered by the current market slump and that the company has back-tested its Bitcoin strategy, which will allow it to HODL through volatile times such as the current winter. The Bitcoin proponent noted that since MicroStrategy started purchasing BTC back in August 2020, the cryptocurrency has performed 10x better than any other asset class, including gold and Nasdaq. Saylor said he also sees Bitcoin becoming the best-performing asset in years to come and he can’t think of anything else.

Bitcoin has plunged more than 52% year to date and is now hovering around US$21,000 per coin, according to data from Coindesk. The most popular cryptocurrency has shed about 70% of its value since hitting an all-time high of roughly US$69,000 in November. The entire crypto market is feeling similar pain. The overall market capitalization of crypto assets has dropped to less than US$1 trillion from its November 2021 peak of US$3 trillion. It’s the first time since 2021 that the asset class has been worth less than US$1 trillion.

Many other assets are also experiencing volatility that’s shaking investors. The S&P 500 Index this week fell in the bear market territory, defined as a drop of at least 20% from the most recent high. Bonds are also sliding, leaving investors few places to hide in markets.

Saylor clarified again that the US$205 million loans from Silvegate bank only account for a small percentage of the firm’s bitcoin-focused balance sheet, so he viewed the latest rumor of the company getting a margin call as “only mak[ing] my Twitter famous.”

“On a multi-billion-dollar balance sheet, we’ve only got a US$200 million loan that we have to collateralize, and we’re 10x over-collateralized on that right now.”

Given the macroeconomic circumstance of rates hiking up, Saylor touted his early strategy of “borrowing US$2.2 billion with a lending interest of 1.8% before interest rate doubles.” He added that most are “unsecured debt,” with the other US$500 million due in seven years. Therefore, he concluded that the company had a healthy balance sheet.