“It is still early to invest in bitcoin,” said Phong Le, MicroStrategy’s CFO. He said this in relation to institutional investments in the framework of the World Now event, which took place on February 3 and 4, 2021.
During his presentation, which was titled “ Corporate Playbook on Bitcoin” ( Bitcoin Corporate Playbook ) , Phong Le maintained a dialogue with Jeremy Price, senior vice president of financial analysis of the aforementioned company.
The two agreed on the importance of corporations maintaining at least a part of its capital in the cryptocurrency devised by Satoshi Nakamoto. “There is no reason for companies listed on the United States or the world stock not to have a stake in bitcoin,” said Le.
For this reason and, as they explained, Following “the spirit of Bitcoin that is open source”, is that they carry out events like World Now and make the learning obtained in the process of available to all MicroStrategy bitcoinization .
This company has in its power 71,079 bitcoins (BTC) , which is equivalent to more than $ 2.6 billion at the time of writing this article . Most of these BTC were acquired in 2020, a fact that was reported by CriptoNoticias.
Strategies to invest in bitcoin
Phong Le commented that, before a company launches to put part of its capital in BTC, it is important that it define a strategy on how it will do it and, for that, those responsible should ask themselves some questions: «What is your purpose? Is it a balance strategy? Do you want it to be just a part of your investments? Do you want to get into Bitcoin mining? Do you want to run a bitcoin node? ‘ The manager explained that the discussion of these questions should be carried out in an executive-level conversation.
Then, Phong Le revealed the MicroStrategy strategy : «We decided on a balancing strategy in which bitcoin is our main reserve asset in the main treasury. We convert our excess cash flow into BTC and we also acquire debt and convert that cash into bitcoin. ‘ He summarized the organization’s strategy as “Buy and Hold ( hodl ).”
MicroStrategy CEO Michael Saylor has said, owns at least 17,000 BTC and also claims that he follows a similar strategy on a personal level. For him, bitcoin is “the most valuable property on earth.”
Price and gave some other recommendations to those interested in incorporating bitcoin in the reserves of their corporations. Among these tips are: take adequate security measures; have insurance that covers possible failures or attacks; and prepare a team within the company that knows how to use the acquired BTC.
The presentation of the “Corporate Playbook on Bitcoin” was complemented, in terms of its content, with a of the lectures Saylor gave at the same event. The CEO revealed three keys to a Bitcoin-based corporate strategy , in a talk that was reviewed by this medium.