MicroStrategy CEO Likens Borrowing to Buy Bitcoin to Investing Early in Facebook

MicroStrategy CEO Likens Borrowing to Buy Bitcoin to Investing Early in Facebook

The CEO of business software company MicroStrategy, which holds more than 105,000 bitcoins in its reserves, told CNBC Friday that borrowing money now to buy more bitcoin was like investing in one of today’s dominant tech companies in the early days. 

“If you borrow billions of dollars at 1% interest and invest it in the next Big Tech digital network that you thought was going to be the dominant Amazon or Google or Facebook of money, why wouldn’t you?” MicroStrategy’s Michael Saylor said, according to CNBC. “I mean, if I could borrow $1 billion and buy Facebook a decade ago for 1% interest, I think I would’ve done quite well.”

Saylor noted that his company has $2.2 billion of debt and pays about 1.5% interest on that debt. Since last August, his company has financed its purchases of massive amounts of bitcoin using company cash flows, equity issuance, convertible debt, senior secured debt and a $1 billion shelf registration.