Saylor believes that companies should invest the fiat money that they own in Bitcoin to avoid self-destruction. Another option that Saylor mentioned is the strategy of using Bitcoin to create new business opportunities.
MicroStrategy CEO Michael Saylor recently presented the keys to a Bitcoin-based corporate plan of action. He shared a guide to legally incorporating cryptocurrency on company balance sheets and “storing it securely.”
Saylor revealed the strategies that have made MicroStrategy one of the most prominent institutional Bitcoin investors. He talked about what led him to invest more than USD 1 billion in Bitcoin. Besides, he spoke of his decision to continue investing after that amount tripled in a few months. Although the company already owns 71,079 BTC (equivalent to around USD 2.6 billion), they will not stop investing soon.
The executive called on companies to follow the steps of MicroStrategy and enter the Bitcoin ecosystem. He believes that corporations must now choose between two paths in the face of the excessive printing of fiat money.
“You can decide to decapitalize, but that would be a kind of self-destruction. You can also recapitalize with an asset that will appreciate faster than the expansion of the money supply. This is where Bitcoin comes into play to save many companies financially,” said Saylor.
The Three Aspects of a Bitcoin-Based Corporate Action Plan
Saylor recommends that corporations choose between: (1) maintaining a Bitcoin balance, (2) converting fiat derivatives into Bitcoin or implementing both strategies at the same time, and (3) striving to develop new business opportunities.
The strategy of keeping a Bitcoin balance is based on using the company’s available fiat money to convert it into Bitcoin. Saylor notes that capital will flow from weaker assets to stronger ones. For that reason, corporations must stop holding their assets in weakening currencies. “This dynamic is driving the Bitcoin market higher and its main attraction is that it is digital gold,” he said.
Under this strategy, a company trapped in the world of a weakened currency decides to digitize its hard-earned money. “This is more than a macroeconomic idea as Bitcoin will provide another opportunity for your company,” added the CEO of MicroStrategy.
The second strategy is to convert the fiat derivatives that companies own into Bitcoin. The reason for this is that fiat derivatives are “a false respite from the “road to bondage. Furthermore, bonds, stocks, and real estate are only a benchmark for fiat. Since the value of the underlying fiat money increasingly dilutes, the best thing is to convert it into Bitcoin. That strategy “offers a return of 200% per year,” Saylor said.
The third strategy is to approach Bitcoin from a business perspective. In that sense, Saylor proposes that corporations develop BTC tools that build software and offer services to their customers.
He also recommended that those who decide to start on this path make sure to develop non-custodial services. He explained that “customers who buy Bitcoin through a mobile app must be able to move their funds freely.”
By Alexander Salazar
