Earlier this year, business intelligence giant MicroStrategy invested $ 425 million from its cache in Bitcoin (BTC). This move was widely seen as a major step in the right direction for the massive adoption of Bitcoin. However, MicroStrategy, with its CEO and founder Michael Sailor, a bitcoin-skeptic bull, cannot lead companies to embrace the pioneering cryptocurrency asset, according to former hedge sponsor Raul Pal.
“I don’t think Michael wants to push the company’s expansion into space because he really speaks Bitcoin, not the corporate teller language, and that should happen,” Pal told podcast presenter Peter McCormack in an episode of the published What Bitcoin Did Podcast. Today .
“It’s too bad for us in this area to speak the language of others that we really want to inspire the system.”
MicroStrategy announced its acquisition of BTC for $ 250 million in August. In September, the company received an additional $ 175 million. Originally Sailor was skeptical, but he has become a steadfast Bitcoin bull, often posting about the coin on Twitter. He also said that he had bought 17,732 BTC for his personal assets before purchasing the company.
“Forget the money, it was most of the cash reserves,” Pal said of receiving BTC from MicroStrategy. “Most companies don’t do that now, but Michael really thinks,” Pal explained, quoting Sailor as not speaking the right language to increase adoption.
“I’ve talked about this several times – you don’t get a pension and asset allocation system until you start talking about the allocation models for their holders,” Pal said. “None of us know what it is, because nobody uses it except for the industry.”
Admittedly, PAL himself was not aware of the exact asset allocation strategies used in various sectors, but he described their widespread adoption. Basically, each sector has its own set of common goals, terminology, and strategies.
“They are based on the distribution models used by the entire pension fund industry, which are used by advisors, actuaries and all that,” he explained.
“It doesn’t matter talking about the value of 100 years of money to Microsoft’s Treasury, which might take 10 years before moving elsewhere. It doesn’t matter. Show it has a portfolio diversification effect compared to the cash it has in commercial loans and securities, treasuries, and various currencies, say, “Well, if you add this, that’s what you do for your wallet,” and then he’ll say, “Yeah, I got it, I’ll do something like this. ”
A number of other major players took big positions in Bitcoin in 2020, such as billionaire Paul Tudor Jones. However, the company’s trend towards asset utilization is still in its infancy.