Bitcoin treasury companies like Strategy can turn fresh capital into Bitcoin almost instantaneously, according to Michael Saylor, as the executive chairman posted a fresh teaser about buying more tokens on Sunday.
The investment cycle is a thousand times faster than technology, real estate, oil and gas and “anything else you’ve ever seen before in your life,” Saylor said in an interview on the Market Disrupters podcast released on Saturday.
“Sometimes we’re literally selling 50 million an hour or 100 million an hour and buying the $100 million of Bitcoin the same hour. Like we could do a billion dollars of capital raising in a day and we might have 20 million of exposure at 4 pm, and by 5 pm, 6 pm, we’re fully done.”
Saylor hinted on Sunday that his company Strategy may be preparing to buy more Bitcoin (BTC), even as corporate Bitcoin treasuries face mounting pressure from a sharp drop in net asset values.
Strategy’s Bitcoin buys are often seen as bullish for the price of Bitcoin, and Saylor’s comments highlight the speed at which treasury firms can turn capital into Bitcoin.
Strategy building in real time
Strategy is the largest corporate holder of Bitcoin, with 640,250 tokens following its most recent purchase on Oct. 13. Its holdings account for nearly 2.5% of Bitcoin’s total supply.
Saylor said his company can accumulate Bitcoin and provide a return for investors far quicker than real estate developers for example, which could take years before investors even see a return.
“You can essentially sell it before you build. We’re literally building it in real time. We’re open for business every day with four credit ATMs,” he said.
“If someone hit the bid and wanted to buy $500 million in a minute, we build a building in a minute. In 60 seconds. Trade is done. Cash change changes hands. We create the collateral. We bought the Bitcoin underlying that day.”
Skeptics and critics are “strategically ignorant”
Strategy’s rapid Bitcoin accumulation started in October 2020, when it scooped up more than 20,000 coins, and has continued to escalate, but the aggressive buying has attracted some criticism, with concerns like dilution risk to shareholders.
Related: Bitcoin to ‘move up smartly again’ toward end of 2025: Saylor
However, Saylor said the skeptics and the cynics are choosing to be “strategically ignorant,” by sticking their heads in the sand rather than trying to understand how the business operates and the possible benefits.
“The equity investors value the company based on BTC yield, the appreciation of Bitcoin per share,” he said.
“Credit investors value the credit, this credit security based upon USD yield, and so just swapping a fiat yield, a yen, a euro, a US dollar yield for a BTC yield with the Bitcoin as the collateral.”
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