MicroStrategy Inc. MSTR co-founder Michael Saylor said that Warren Buffett’s Berkshire Hathaway Inc. BRK was destroying billions of dollars in capital by not utilizing the huge hordes of cash at their disposal to invest in Bitcoin BTC/USD.
What Happened: During a podcast with Patrick Bet-David, Saylor drew attention to the company’s massive $325 billion cash stockpile.
“That $320 billion.. that is destroying $32 billion a year. They are destroying $3 billion a month in capital because they’re generating a 3% after-tax yield at best, and the cost of capital is 15%. So take 12% negative real yield,” Saylor said.
Having said that, Saylor expressed confidence in getting Warren Buffett to invest in Bitcoin BTC/USD.
“I’d want to bet you that if I had an hour alone with Buffett in a calm environment, I’d walk out and he would say this Bitcoin thing is a pretty good idea.”
Saylor was optimistic that Buffett would have wanted to buy Bitcoin after the interaction and would come out saying that the late Charlie Munger would have liked the idea.
On being asked why he hasn’t reached out to the Berkshire Hathaway Inc. BRK CEO yet, Saylor emphasized that people need to feel the necessity to understand Bitcoin and be open to a paradigm shift.
“It’s like people with a strong corporate view and a strong conviction of their company don’t have an open mind to a profound paradigm shift. They don’t want to embrace that idea,” the Bitcoin bull said.
Saylor also expressed his willingness to meet anyone with billions of cash that’s losing value to convince them to switch to the Bitcoin standard.
Why It Matters: While Saylor was optimistic, 94-year-old Buffett’s unhinged views on Bitcoin inspire little hope.
In a 2018 interview with Yahoo! Finance, Buffett famously said, “If you buy something like Bitcoin or some cryptocurrency, you don’t really have anything that has produced anything. You’re just hoping the next guy pays more.”
He went a step ahead and deemed the apex cryptocurrency “rat poison squared” during a CNBC interview some months down the line.
Meanwhile, Saylor continues to promote the virtues of Bitcoin to investors and corporations. He recently revealed that he would give a three-minute presentation to Microsoft’s board of directors to make a case for Bitcoin investment.
Price Action: At the time of writing, Bitcoin was trading at $93,354.74, up 1.70% in the last 24 hours, according to data from Benzinga Pro. Shares of MicroStrategy were up 3.13% in pre-market trading.
Read Next:
Photos courtesy: MicroStrategy and Shutterstock
Market News and Data brought to you by Benzinga APIs
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
