Saylor: “Bitcoin delivers 50%+ annual returns… Strategy shares still undervalued”

Michael Saylor, CEO of Strategy (MicroStrategy), underscored both Bitcoin’s long-term profitability and what he sees as the undervaluation of his company’s stock.

In an interview with Fox Business on the 4th, Saylor said, “Bitcoin is an asset meant to be held for the long term, and to date it has delivered (over the long run) an average annual return of more than 50%.”

He explained, “Strategy employs a strategy that doubles Bitcoin’s returns and volatility,” adding that it works by “issuing short-term bond-like credit instruments to provide some investors with fixed returns, while allocating the remaining upside to shareholders.”

He argued that Wall Street is still undervaluing the company. “We are the fourth most profitable financial firm in the United States, but by market capitalization or price-to-earnings (P/E) metrics we remain undervalued,” he said, adding that “it will take more time for Wall Street to fully understand the potential of digital capital and the Bitcoin ecosystem.”

He also stressed that “(Bitcoin) can’t be stopped because, somewhere in the world at any given time, someone is supporting the network with electricity, computing power, and political and economic power,” adding that “it keeps getting stronger and spreading like a swarm of hornets.”

Saylor also said, “If you use traditional Treasuries as capital, you lag the S&P 500 by 10% every year, but if you use Bitcoin, you outperform by more than 40%,” and emphasized that “other companies adopting a Bitcoin standard is akin to the adoption waves of electricity, internal combustion engines, the internet, and semiconductors.”