Bitcoin treasury companies like Strategy can turn new capital into Bitcoin almost instantly, according to Michael Saylor, whose executive chairman posted a new teaser on Sunday about additional token purchases.
In an interview on the Market Disruptors podcast published Saturday, Saylor said investment cycles are 1,000 times faster than “everything I've ever seen in my life,” including technology, real estate and oil and gas.
“You could literally sell 50 million, 100 million in an hour and buy $100 million in Bitcoin in that same hour. It's like you could raise $1 billion in one day, and by 4 p.m. you'd have 20 million exposure, and by 5 p.m., 6 p.m. you'd be completely done.”
Saylor hinted on Sunday that his company, Strategy, may be preparing to buy more Bitcoin (BTC), even as corporate Bitcoin treasuries face increasing pressure from plummeting net asset values.
Strategy's Bitcoin purchases are often seen as bullish on the price of Bitcoin, and Saylor's comments highlight the speed with which treasury companies are converting capital into Bitcoin.
Michael Saylor said his company can buy huge amounts of Bitcoin in a short period of time. sauce: YouTube
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Strategy is the largest corporate holder of Bitcoin, holding 640,250 tokens after its latest purchase on October 13th. The company's holdings account for nearly 2.5% of the total Bitcoin supply.
Saylor said the company can accumulate Bitcoin and provide returns to investors much faster than, say, a real estate developer, but it could take years for investors to see a return.
“You can basically sell before you build. We're literally building in real time. We're open every day with four credit ATMs,” he said.
“If someone makes a successful bid and wants to buy $500 million within a minute, we will build the building in one minute. In 60 seconds. The transaction will be completed. The cash exchange will be exchanged. We will create collateral. We bought the underlying Bitcoin that day.”
Skeptics and critics are 'strategically ignorant'
Strategy's rapid Bitcoin accumulation began in October 2020, when it collected more than 20,000 coins, and has continued to escalate, but its aggressive purchases have drawn some criticism due to concerns such as the risk of dilution to shareholders.
But Thaler said skeptics and cynics are choosing to stick their noses in the face of reality and be “strategically ignorant” instead of trying to understand how the business operates and its possible benefits.
“Equity investors value companies based on BTC yield, or the rate of increase in the value of Bitcoin per share,” he said.
“Credit investors value credit, and this credit guarantee is based on USD yields, so they simply use Bitcoin as collateral and exchange fiat yields, yen, euro, and USD yields for Bitcoin yields.”
