MicroStrategy's Saylor Cites Pandemic, Monetary Policy for 2020 Bitcoin Investment

Michael Saylor, the founder of MicroStrategy, revealed that the Covid-19 pandemic and the subsequent monetary policies implemented by the US central bank were the primary drivers behind his decision to invest in Bitcoin in 2020. During an interview with Dr. Jordan B. Peterson, Saylor expressed his deep interest in Bitcoin, which he saw as a solution to what he termed a “war on currency” amidst global lockdowns and diminished interest rates.

Saylor described the year 2020 as a period of significant economic bifurcation, where small and medium-sized businesses and workers were severely impacted by restrictive policies, while investors and Wall Street entities thrived. He highlighted that MicroStrategy's $500 million in cash reserves were rendered non-performing due to near-zero interest rates, forcing him to seek alternative investment strategies.

Saylor's frustration with the economic environment led him to explore various investment options, including real estate, stock portfolios, and collectible art. However, he found that these assets had already skyrocketed in value due to the zero-interest rate environment, making them less attractive. He sought a liquid, fungible asset that could store economic value over an indefinite period, ultimately leading him to Bitcoin.

Saylor's journey into Bitcoin began with a conversation with his long-term friend and founder of Blockchain Investment Group, Eric Weiss. Initially skeptical of Bitcoin, Saylor delved into extensive research using YouTube videos, podcasts, and books. He concluded that Bitcoin was a non-sovereign store of value, similar to gold, and a viable solution to the economic challenges he faced.

MicroStrategy made its first Bitcoin purchase in August 2020, acquiring 21,454 coins for $250 million. Since then, the company has continued to invest in Bitcoin, becoming the world's largest corporate holder of the asset with approximately 582,000 BTC. Saylor's decision to invest in Bitcoin was driven by his belief in its potential as a store of value and a hedge against the devaluation of fiat currencies.