Michael Saylor, CEO of Business software company MicroStrategy, said his company holds $4 Billion of Bitcoin in an interview with CNBC.
The company holds more than 105,085 bitcoins in its reserves. Saylor defended the company’s debt-financed purchase of bitcoin. He told CNBC Friday that borrowing money for bitcoin is like investing in Facebook in the social network’s early days.
“If you borrow billions of dollars at 1% interest and invest it in the next Big Tech digital network that you thought was going to be the dominant Amazon or [Alphabet’s]gugg Google or Facebook of money, why wouldn’t you?” Saylor said. “I mean, if I could borrow $1 billion and buy Facebook a decade ago for 1% interest, I think I would’ve done quite well.”
Microstrategy issued its Q2 earnings report on Thursday, in which it said it planned to continue to add bitcoin to its balance-sheet. During the quarter, the company recorded an impairment loss of $424.8 million on its bitcoin holdings.
Saylor noted that his company has $2.2 billion of debt and pay about 1.5% interest on that debt. At the end of June, Microstrategy bitcoin holdings were worth $3.65 billion, reflecting bitcoin’s market price of $34,763 at the time. The non-GAAP(generally accepted accounting principles) digital asset cost basis of those holdings was $2.74 billion, or $26,080 per bitcoin.
