Tech company MicroStrategy continues to surprise the market with its huge investments in Bitcoin. Founder and executive chairman Michael Saylor recently spoke to the New Zealand Herald about how the firm is transforming traditional financial markets with the first cryptocurrency.

From Software Developer to Largest Corporate Bitcoin Holder

Over the past four years, MicroStrategy's market cap has grown from $1.5 billion to more than $40 billion. Saylor attributes this rapid growth to the company's approach to integrating bitcoin into traditional financial markets.

“MicroStrategy is entering a new market; we are issuing securities backed by digital capital,” Saylor explained. He described the company’s investors as “bitcoin believers” who believe in the cryptocurrency’s long-term growth despite potential volatility.

Accumulation strategy and impact on the market

MicroStrategy currently holds 252,220 bitcoins, representing more than 1% of all bitcoins that will ever be mined. The current value of these assets is estimated at approximately $16 billion.

"MicroStrategy's real business is to be the leading issuer of securities for acquiring bitcoin. And as we acquire bitcoin, we increase its scarcity," Saylor said.

Criticism and Reaction Saylora

Despite some traders shorting the company's shares due to its valuation being 2.5 times higher than Bitcoin, Saylor remains unfazed.

"When I was younger, I was worried about people shorting my stocks," he said. "Not anymore, because MicroStrategy simply provides institutional investments that institutional investors can use to build a portfolio with long, short or hedged positions."

MicroStrategy's Role in Market Transformation

Saylor emphasized MicroStrategy's role in bridging traditional finance and digital assets: "If we didn't exist, billions and billions of dollars of capital from traditional financial markets would not be invested in Bitcoin."

The company issues convertible bonds using its Nasdaq-listed shares to fund additional Bitcoin purchases. While some have called the strategy an “infinite money scheme,” Saylor dismissed that characterization. “It’s not a scheme; it’s the digital transformation of capital markets,” he said.

Saylor also outlined MicroStrategy’s plans to become a “bitcoin bank” with a potential trillion-dollar valuation. He explained that the firm would create capital market instruments tied to bitcoin that could be offered to investors.