In a keynote speech at bitcoin-for-corporations”>MicroStrategy World: bitcoin for corporations, MicroStrategy CEO Michael Saylor gave a masterclass on corporate finance and the power of bitcoin to boost corporate balance sheets. Saylor highlighted that bitcoin is the single solution for capital appreciation in an inflationary environment.
In his speech, Saylor compared the cost of capital to the benchmark a company must exceed to increase its purchasing power, arguing that “bitcoin is the only asset that exceeds the cost of capital. Another way to say that, is everything else is dilutive.”
Describing further the TRUE cost of capital, noted that “the S&P is the modern proxy for the cost of capital… If you were to pick one metric and say, what is the metric that gives you an idea of how quickly the global supply of currency in dollars? “Probably the S&P 500…this is another way of looking at inflation.”
Saylor continued to emphasize his belief that all assets except bitcoin do not contribute to corporate balance sheets despite their general acceptance. In particular, he highlighted the relative underperformance of silver, gold and US government bonds:
“(If companies) invest in Treasury bills, they will earn 3% after taxes against a cost of capital of 12% per year. And so if you have $100 billion of equity, you destroy $9 billion of shareholder value a year… The story here is that bonds are worthless, right? They are terrible capital assets. The money doesn't work. “Gold is not keeping pace with the cost of capital.”
There is no second best crypto asset
The MicroStrategy CEO pointed out key differences between bitcoin and alternative cryptocurrencies like ethereum, expressing the importance and need for proof-of-work based consensus to create a digital product.
“You could see the writing on the wall when the bitcoin Spot ETF was approved in January. At the end of May, you will know that ethereum will not be approved. And when ethereum is not approved, at some point this summer it will become abundantly clear to everyone that ethereum is considered a crypto asset security, not a commodity. After that, you will see that (for) ethereum, BNB, Solana, Ripple, Cardano, everything in the stack.”
Regarding bitcoin's energy use, Saylor invoked the idea of a “physical link to the real world” in the Bitcon consensus. He described the network as having “raw digital power that stands in the way of anyone who tries to undermine the integrity of the network… The network is being powered by electricity, and that creates a decentralizing dynamic that brings the entire network to the end of its life.” life”. the grid in search of stagnant energy.”
It's going up, forever
Saylor's conviction and use of physics-based metaphors were present as always when he spoke about bitcoin's price appreciation and its continued monetization. “It's never slowing down. The graph never decreases. It only goes in one direction. bitcoin is a ratchet of capital. It is a one-way ratchet. Archimedes said, give me a lever long enough and a place to stand and I can move the world. bitcoin is the place where we must stand.“
“There is no idea more powerful than the digital transformation of capital… No force on earth can stop an idea whose time has come. This is an idea. Your time has come. It's unstoppable. And so I'll end with the observation that bitcoin is the best. The best what? The best.”
Watch the full livestream of Day 2 of MicroStrategy World: bitcoin for Corporations on bitcoin Magazine's YouTube channel
