Michael Saylor, executive chairman of Strategy (formerly MicroStrategy), dismissed concerns that the company holds too much Bitcoin.
In an August 1 interview with CNBC, Saylor argued that it is not excessive to own 3% to 7% of total Bitcoin supply. Instead, he called it a balanced position that allowed other institutions and individuals to participate.
Saylor also highlighted the growing interest from public companies. He said more than 160 companies have held Bitcoin on their balance sheets, which has skyrocketed from around 60 companies last year. This growth is not limited to the US, but includes European and Asian companies, he added.
According to him:
“Companies such as Metaplanet (Japan), Capital B (France), and SmartWeb (UK) are participating.”
The strategy is currently Bitcoin's largest corporate holder, with over 628,000 BTC, worth $72 billion. Based on Bitcoin Treasury data, this represents about 3% of the total supply of Bitcoin, and more than half of the Bitcoin held by public companies.
Bitcoin-backed digital credits
Besides buying Bitcoin, Saylor pointed out that the strategy is creating financial products around flagship digital assets.
He said the company is building a financial ecosystem around assets by issuing credit certificates backed by the Bitcoin Treasury. Depending on the risk appetite, these products offer a variety of ways investors can gain exposure.
For context, the company's latest product, a preferred stock called Stretch, is a way to issue digital credits backed by digital capital. The product is aimed at investors seeking monthly income, capital protection and reduced market exposure.
According to Saylor, the service offers a dividend of 9% per year. This contrasts with his average 4% yield in the financial market. He argues that such yields are made possible by the possibility of long-term gratitude for Bitcoin, which estimates to be 30% per year over the next 20 years.
Saylor also highlighted the strike as another offering designed to attract investors to the sector.
He pointed out that while the company offers strike-like products for more risk-controlled returns:
“Strike offers 80% of the benefits, 20% with structured dividends, and key protection. It is used by investors to hedge funds or S&Ps.”
Additionally, Saylor described Bitcoin as “a digital product with 50% volatility and a 50-year period.” For investors looking for amplified exposure, Strategy's Equity offers a “2x Bitcoin,” a structure that is attractive for derivative traders.