MicroStrategy Founder Michael Saylor Explains Why He Started Investing in Bitcoin in 2020

In an interview with Dr. Jordan B. Peterson, Michael Saylor, the founder of MicroStrategy (now called Strategy), explained why he started investing in Bitcoin in 2020.

In a recent interview with Dr. Jordan B. Peterson, Michael Saylor, the founder of MicroStrategy (now called Strategy), discussed the factors that led him to begin investing in Bitcoin in 2020.

Saylor explained the pressing situation of the U.S. Federal Reserve keeping interest rates near zero throughout 2020. He described this period as a "war on currency."

The interview touched upon the hardship faced by small businesses and workers due to the COVID-19 lockdowns, which were termed "soul-stealing" by Saylor.

In contrast, big investors on Wall Street saw their wealth increase during the same period.

Saylor further explained that the Federal Reserve had engaged in massive money printing, leading to a stock market rally by summer. However, this also formed a bubble in stocks and other investments.

At the same time, MicroStrategy had around $500 million in cash that wasn't generating any return due to the low interest rates.

Saylor's goal was to find a safe haven for his company's money, something that would retain its value over time. He considered real estate, stocks, or even rare art like Monet’s paintings, but found them too expensive.

Saylor mentioned that in 2018 he viewed Bitcoin as a "scam." But in 2020, after researching it through YouTube, podcasts, and books with help from his friend Eric Weiss, he changed his mind.

Saylor realized that Bitcoin was superior to gold in terms of holding value without relying on governments or banks.

In August 2020, MicroStrategy made its first Bitcoin purchase, acquiring 21,454 coins for $250 million.

Currently, the company owns 582,000 Bitcoins, valued at approximately $63 billion, making it the largest corporate Bitcoin holder, according to the Saylor Tracker.

Saylor's decision stemmed from his distrust of fiat money, which was rapidly losing value amid the 2020 economic crisis.

His move has also served as an example for other companies on how to use Bitcoin to hedge against inflation and government-controlled monetary systems.