- MicroStrategy (MSTR) acquired 12,000 Bitcoin (BTC) on Monday to increase its overall holdings to 205,000 BTC.
- Michael Saylor confidently said that Bitcoin will overtake gold.
- Gold is currently the top asset in the world by market cap while Bitcoin ranks 8th on the list.
Michael Saylor: Bitcoin is “Going to Eat Gold”
The bold acquisition of MicroStrategy of 12,000 BTC at $821 million or $68,477 per BTC certainly got everyone’s attention. Not only did the company buy near the top, but it also timed it on the same day the digital asset recorded a new all-time high (ATH) above $72K.
In an interview with CNBC right after the daring move, MSTR Co-Founder and Executive Chair Michael Saylor confidently declared his belief that the value of Bitcoin will continue to gain traction. It will go to the point that it will eventually overtake gold.
“Bitcoin is certainly at least digital gold, it’s going to eat gold,” said Saylor. “It’s got all of the great attributes of gold and it’s got none of the defects of gold.”
By design, Bitcoin was supposedly an alternative to Fiat currency in payment systems. However, its valuation has grown to the point that its use case has been transformed into a store of value like gold. The digital asset also possesses the same fungible, scarce, and decentralized nature of the precious metal. What elevates BTC though is the exponential rise of its price because of certain advantages it has compared to gold that drives its demand.
Saylor explained that, unlike gold, Bitcoin could be moved from one place to another in just a few minutes and can be traded 27/4. With that, he expects BTC to direct funds further away from other risk assets like the SPDR S&P 500 (SPY) exchange-traded fund (ETF). Meanwhile, the recent filing of BlackRock to purchase spot Bitcoin exchange-traded products (ETPs) for its Global Allocation Fund is foreseen as a catalyst for similar efforts in other investment managers.
Bitcoin’s Performance
The latest peak of Bitcoin came at $72,850.71 today. With its circulating supply at 19.65 million BTC, the overall market cap of the crypto asset also topped at $1.432 trillion, making it the 8th largest asset in the world by market cap. In contrast, gold has a market cap of $14.653 trillion at $2,178 per troy ounce.
MicroStrategy’s investment in Bitcoin as of March 10 is at $6.91 billion. During BTC’s ATH, the firm could’ve already profited an easy $8.02 billion. But then again, we don’t see them selling anytime soon.