Michael Saylor: Our Multi-Billion Dollar Bitcoin Game Not a Ponzi Scheme

Michael Saylor, the founder and executive chairman of business intelligence firm MicroStrategy, has responded to critics who have called the company a Ponzi scheme because of its bitcoin (BTC) acquisition strategy.

In an interview with CNBC, Saylor likened MicroStrategy’s BTC acquisition strategy to the real estate sector in Manhattan, insisting that it is a real economy and far from being a Ponzi scheme.

MicroStrategy’s Multi-billion Dollar BTC Game

MicroStrategy began acquiring BTC in 2020 when the asset was worth roughly $11,000. The company has continued buying the cryptocurrency even after it surpassed $100,000 earlier this month.

The past five weeks have seen MicroStrategy announce BTC purchases worth billions of dollars. Since November 11, the business intelligence firm has been BTC shopping nonstop for five consecutive Mondays, reinforcing its position as the largest publicly traded holder of the leading digital asset.

MicroStrategy’s latest purchase was 15,350 BTC worth $1.5 billion on December 16. The acquisition increased the company’s holding to 439,000 BTC, at an average purchase price of $61,725 per coin and a collective cost price of $27.1 billion. The stash is currently worth over $47 billion, with BTC trading above $107,300 at writing time.

Notably, MicroStrategy’s latest purchase also marked the first time the company bought BTC above $100,000.

Consistent debt and equity issuances have fueled these BTC acquisitions. MicroStrategy has been issuing senior convertible notes and leveraging debt to increase its BTC holdings. This led to criticism from market participants, with the narrative that MicroStrategy is a Ponzi and pyramid scheme making the rounds.

An Economy, Not a Ponzi Scheme

Regardless, Saylor insists otherwise. He explained to CNBC that MicroStrategy is buying BTC just like developers in Manhattan, who issue more debt to develop buildings every time real estate rises in value.

“That’s why your buildings are so tall in New York City, it’s been going on for 350 years. I would call it an economy.” Saylor insisted, adding, “I would have bought Manhattan 100 years ago, 200 years ago, every year for the past 300 years. You pay a little bit more than the person that bought Manhattan before you, but it’s always a good investment to invest in the economic capital of the free world.”

Meanwhile, Saylor said MicroStrategy has no plans to stop buying BTC because every day is a good day to purchase the cryptocurrency.