The MicroStrategy boss offers to tell the Tesla CEO about his Bitcoin investment strategy.
Michael Saylor, the CEO of MicroStrategy, a major software maker, who has invested $425 million in Bitcoin this year with his company, advises Elon Musk to bet on the cryptocurrency as well.
Accordingly, Saylor recommended on Twitter today that the prominent Tesla CEO convert the electric car maker’s corporate assets from U.S. dollars to Bitcoin (BTC). According to AssetDash, Tesla’s market value currently stands at a substantial $658 billion, even a fraction of which would have a massive impact on the crypto market. Rather, Musk would be sending a strong signal to „all the other companies listed in the S&P 500,“ according to Saylor.
To make this move palatable to the Tesla CEO, the MicroStrategy boss offered to tell him his „strategy.“ „From rocket scientist to rocket scientist,“ as he adds with a wink to that effect. Indeed, Saylor has a degree in rocket science from the prestigious U.S. university MIT, while Musk is researching rocket science with his second company, SpaceX.
Musk’s personal wealth is estimated to be more than $153 billion, however, as of February 2019, he had stated that he nonetheless owns only 0.25 BTC.
Although Saylor’s personal wealth is 300 times smaller at $500 million, the MicroStrategy CEO seems significantly more risk-averse when it comes to Bitcoin, as his company made arguably one of the largest investments in the cryptocurrency ever this year. And that boldness appears to be paying off, as the equivalent of the $425 million the software maker has invested in Bitcoin is expected to have nearly doubled to $24,000 as a result of the cryptocurrency’s recent surge.
When Musk asked in response to Saylor’s tweets whether a transaction of that magnitude is even possible in Bitcoin, several voices in the crypto industry spoke up at once.
Sam Bankman-Fried, the chief executive of Hong Kong-based crypto trading platform FTX, responded that Musk could „unwind such an investment over the course of a week,“ while Gemini co-founder Tyler Winklevoss interjected that there is „enough liquidity to make it happen.“
However, gold advocate and bitcoin critic Peter Schiff warned Musk against investing in the cryptocurrency’s „Ponzi scheme.“ He said the Tesla CEO should not blacken his shareholders the same way MicroStrategy did.
Since the software maker initially invested $250 million in Bitcoin in August, Saylor has become a big proponent of Bitcoin. Accordingly, he calculated, for example, that a tech company like Apple could gain more than $100 billion in market value just by investing in the cryptocurrency.
„The big tech companies need to incorporate Bitcoin into their products to stay competitive,“ as Saylor opined this Friday. To which he added, „All companies need to convert their assets into Bitcoin to remain solvent in the future.“