In a Keynote address at MicroStrategy World: Bitcoin for Corporations, MicroStrategy Executive Chairman Michael Saylor delivered a masterclass on corporate finance and the power of bitcoin to supercharge corporate balance sheets. Saylor made a point to emphasize Bitcoin as the single solution for capital appreciation in an inflationary environment.

In his speech, Saylor likened the cost of capital to being the benchmark which a company must surpass to increase its purchasing power, arguing that “Bitcoin is the only asset that exceeds the cost of capital. Another way to say that, is everything else is dilutive.”

Further describing the true cost of capital, he noted that the “S&P is the modern surrogate for the cost of capital… If you had to pick one metric and say, what’s the metric that gives you a sense of how rapidly the world currency supply is expanding in dollars? Probably the S&P 500… this is another way to see inflation.”

Saylor went on to emphasize his belief that all assets, except bitcoin, are not accretive to corporate balance sheets despite their general acceptance. In particular, he highlighted the relative underperformance of the silver, gold and US government bonds:

“[If companies] invested in T-bills, they’re going to get 3% after tax against a 12% cost of capital per year. And so you hold $100 billion of capital, you destroy $9 billion of shareholder value a year… The story here is that the bonds don’t hold value, right? They’re awful capital assets. Silver doesn’t work. Gold doesn’t keep up with the cost of capital.”

There Is No Second-Best Crypto Asset

The MicroStrategy Executive Chairman noted key differences between Bitcoin and alternative cryptocurrencies like Ethereum, expressing the importance and necessity of proof-of-work-based consensus in creating a digital commodity.

“You could see the writing on the wall when the spot ETF of Bitcoin was approved in January. By the end of May, you’ll know that Ethereum is not going to be approved. And when Ethereum is not going to be approved, sometime this summer it’ll be very clear to everyone that Ethereum is deemed a crypto asset security, not a commodity. After that, you’re going to see that [for] Ethereum, BNB, Solana, Ripple, Cardano – everything down the stack.”

On the point of Bitcoin’s energy use, Saylor invoked the idea of a “physical linkage to the real world” in Bitcon’s consensus. He described the network as having “raw digital power standing in the way of anybody that would try to undermine the integrity of the network… The network is feeding on electricity, and that creates a decentralizing dynamic that drives all of the network to the end of the grid in the quest of stranded energy.”

It’s Going Up, Forever

Saylor’s conviction and use of physics-based metaphors were present as ever as he spoke on Bitcoin’s price appreciation and continued monetization. “It’s never declining. The chart’s not ever decreasing. It only goes one way. Bitcoin is a capital ratchet. It’s a one-way ratchet. Archimedes said, give me a lever long enough and a place to stand and I can move the world. Bitcoin is the place to stand.”

“There’s no more powerful idea than the digital transformation of capital… No force on earth can stop an idea whose time has come. This is an idea. Its time has come. It’s unstoppable. And so I’m going to end with the observation that Bitcoin is the best. The best what? The best.”

Watch the full MicroStrategy World: Bitcoin for Corporations Day 2 Livestream on the Bitcoin Magazine YouTube Channel

Source: Bitcoin Magazine

The post Michael Saylor Delivers Bitcoin Masterclass To Fortune 1000 Companies appeared first on Crypto Breaking News.

DeFi Technologies has become the latest publicly traded company to adopt #bitcoin as its primary reserve asset
DeFi Technologies, a publicly traded company that focuses on Web3 technologies, has taken a page out of #MicroStrategy 's playbook by announcing its own Bitcoin treasury strategy. 
It has made an initial acquisition of 110 Bitcoins ($7.7 million) after deciding to make Bitcoin its primary reserve asset. 
The company, whose shares are trading on Toronto's Cboe Canada, explained that it had acquired #Bitcoin❗ in order to protect the company's assets from currency debasement. Roussy Newton, CEO of DeFi Technologies, is convinced that the company could potentially expand its treasury because of the latest investment. 
Business intelligence MicroStrategy famously became a trailblazer in the realm of corporate Bitcoin adoption with its audacious bet in August 2020. The bet has paid off, with co-founder #michaelsaylor becoming one of the most prominent Bitcoin advocates. As reported by @WISE CRYPTO NEWS , the company's stock was recently added to the MSCI World Index after its shares surged by more than 100% in 2024. MicroStrategy remains the biggest corporate holder of the leading cryptocurrency by a large margin with its massive $15 billion Bitcoin fortune.
After MicroStrategy, Tesla also purchased $1.5 billion worth of Bitcoin in February 2021, but it has already liquidated a substantial portion of that investment. 
Last month, medical technology company Semler Scientific also decided to purchase $40 million worth of Bitcoin. 
Overall, corporate adoption of Bitcoin has failed to take off, with very few non-crypto companies adding the leading cryptocurrency to their balance sheets. However, new accounting rules, which will go into effect next year, are expected to make it easier for companies to buy Bitcoin. 
#BTC