MicroStrategy's executive chairman Michael Saylor expressed willingness to provide cryptocurrency guidance to former President Donald Trump if requested, according to statements made during a Bloomberg Open Interest interview on Wednesday.
"I'm always willing to provide a thought on constructive digital asset policy either in confidence or publicly," Saylor stated, noting he would likely accept a position on a Digital Assets Advisory Council if offered. While confirming meetings with members of Trump's incoming administration, Saylor did not elaborate on specific details.
The timing of Saylor's comments coincides with MicroStrategy's Bitcoin portfolio inclusion in the Nasdaq-100 index, replacing Super Micro Computer. However, the company's substantial Bitcoin holdings - currently at 439,000 BTC valued around $45 billion - could affect its index status.
Industry experts suggest MicroStrategy may face reclassification as a financial company in March 2024, potentially leading to removal from the Nasdaq-100, which exclusively includes non-financial firms. Addressing these concerns, Saylor emphasized that MicroStrategy maintains a robust software business generating approximately $75 million in annual operating income.
"We have a very healthy software division now and we're very proud of it," Saylor remarked, adding that the company has evolved into what he calls a Bitcoin Treasury company.
MicroStrategy continues its aggressive Bitcoin acquisition strategy under its 21/21 plan, aiming to reach a $42 billion Bitcoin target by January 2025. The company plans to leverage fixed-income markets in the coming quarter to enhance returns for shareholders.
While MicroStrategy's Bitcoin investments helped secure its Nasdaq-100 position, S&P 500 inclusion remains challenging due to profitability requirements. However, Saylor expressed optimism about future prospects, particularly with upcoming changes in accounting standards that could improve financial reporting for cryptocurrency holdings.
"I expect we'll be generating billions of dollars a year or tens of billions of dollars a year of investment income," Saylor projected, highlighting potential opportunities for broader market inclusion by 2025.