MicroStrategy CEO on Company's Bitcoin Lending Plans

Software company MicroStrategy is learning in real time the downside of investing a big portion of its cash reserves in cryptocurrencies. Even at its current nose-bleed price of just above $47,000, bitcoin has fallen 32% from its all-time high of $69,000 in November. MicroStrategy’s stock has seen a similar decline over the same period, with its shares closing at $546 on Monday, a 33% decline. The S&P Small Cap 600, the index that held MicroStrategy before the company was removed for undisclosed reasons in September, dropped just 9% over the same period.

MicroStrategy’s experience might suggest co-founder and CEO Michael Saylor has chosen a risky strategy. We so far haven’t heard such an admission from Saylor, however. The bitcoin evangelist told The Information in a November interview that he sees long-term advantages  in holding the digital currency on his company’s balance sheet, since the price of bitcoin hasn’t reached its full potential. Saylor foresees bitcoin hitting $600,000 a coin, and eventually $6 million.