In his MicroStrategy World: Bitcoin for Enterprise keynote, MicroStrategy Chairman Michael Saylor gave a masterclass on corporate finance and the power of Bitcoin to strengthen corporate balance sheets. Saylor made a point of emphasizing Bitcoin. Single Solutions for Capital Gains in an Inflationary Environment.
In his speech, Saylor likened the cost of capital to a benchmark that a company must surpass. Increase Purchasing power is “Bitcoin Only Assets that exceed the cost of capital. In other words, is Everything else is dilutive.”
Additional explanation truth On the cost of capital, he said, “S&P is a modern replacement for the cost of capital…. If you had to pick one measure, which would tell you how fast the world’s money supply in dollars is expanding? Maybe S&P 500… “This would be another way to look at inflation.”
Saylor went on to highlight his belief that all assets except Bitcoin are not reflected in corporate balance sheets, despite general acceptance. In particular, he highlighted the relative underperformance of silver, gold, and U.S. Treasury bonds.
“If (a company) invested in a T-bill, it would earn 3% after tax on its 12% annual cost of capital. So you have $100 billion in capital, destroying $9 billion a year in shareholder value… The story here is that bonds do not hold value. Yes? They are terrible capital assets. Silver doesn’t work. Gold cannot keep up with the cost of capital.”
There is no second best cryptocurrency asset
The MicroStrategy chairman expressed the importance and necessity of proof-of-work-based consensus in creating digital goods, citing key differences between Bitcoin and alternative cryptocurrencies such as Ethereum.
“You could see the writing on the wall when the Bitcoin spot ETF was approved in January. By the end of May, we will find out that Ethereum will not be approved. And when Ethereum is disapproved, it will be very clear to everyone at some point this summer that Ethereum will be viewed as a cryptocurrency asset security rather than a commodity. After that, you will see Ethereum, BNB, Solana, Ripple, Cardano, etc. all further down the stack.”
Regarding Bitcoin’s energy use, Saylor mentioned the idea of a “physical connection to the real world” in Bitcon’s consensus. He described the network as having “a raw digital power that thwarts anyone who seeks to undermine the integrity of the network… The network is electrifying and creates a distributed dynamic that drives all networks to their end.” “It’s a grid.”
It’ll go up forever
Saylor’s confidence and use of physics-based metaphors were still present when he talked about Bitcoin’s rising price and continued monetization. “It never decreases. The chart never shrinks. It only goes in one direction. Bitcoin is a capital ratchet. It is a one-way ratchet. Archimedes told me that if you give me a lever long enough and a place to stand, I can move the world. Bitcoin is the place to be.”
“There is no more powerful idea than the digital transformation of capital… No power on earth can stop an idea whose time has come. This is an idea. Now the time has come. I can’t stop. So I will end with the observation that Bitcoin is the best. What’s the best? It’s best.”
Watch the full MicroStrategy World: Bitcoin for Enterprise Day 2 livestream on the Bitcoin Magazine YouTube channel.