Recently, Michael Saylor, a well-known Bitcoin advocate and the founder of the business intelligence giant MicroStrategy, took to Twitter to discuss the world’s leading cryptocurrency in relation to Warren Buffett and his investment firm Berkshire Hathaway.
Warren Buffett, along with his late right-hand man Charlie Munger, has long been a vocal critic of Bitcoin. Munger, who passed away last year, and Buffett have consistently dismissed Bitcoin as having no value, with Buffett famously referring to it as “rat poison squared.”
Despite Buffett and Munger’s criticisms, Bitcoin has managed to surpass Berkshire Hathaway in terms of market capitalization. While Berkshire Hathaway currently has a market cap of $862.05 billion, Bitcoin boasts a market cap of $1,245,020,193,429, showcasing the rapid growth and popularity of the cryptocurrency.
Saylor points out that the success of Berkshire Hathaway could potentially be linked to investing in Bitcoin. He suggests that Warren Buffett should consider following in the footsteps of MicroStrategy, a company that has been steadily accumulating Bitcoin since August 2020.
MicroStrategy’s strategic decision to invest in Bitcoin has paid off, with the company now holding 214,400 BTC valued at $13.22 billion on its balance sheet. This move has significantly increased the company’s market capitalization to $21.57 billion, showcasing the positive impact that Bitcoin can have on a traditional company’s financial standing.
The contrasting approaches of Warren Buffett’s Berkshire Hathaway and MicroStrategy highlight the potential benefits of embracing Bitcoin as an investment opportunity. While Buffett continues to criticize Bitcoin, the success of MicroStrategy serves as a testament to the positive impact that the cryptocurrency can have on a company’s financial outlook. As the cryptocurrency market continues to evolve, it will be interesting to see if more traditional investors like Buffett choose to adopt a more Bitcoin-friendly approach in the future.