Michael Saylor claims he can convince Warren Buffett to buy Bitcoin

Michael Saylor, co-founder and executive chairman of MicroStrategy, recently discussed the cash management strategy of Warren Buffett’s Berkshire Hathaway during a Nov. 18 interview on the PBD Podcast.

Saylor criticised the company’s massive $325 billion cash reserve, claiming that it generates a mere 3% after-tax yield at best while facing a 15% cost of capital. 

This leads to a 12% negative real yield, resulting in an annual erosion of $32 billion in shareholder value. 

“The $325 billion is destroying $32 billion a year. They are destroying $3 billion a month in capital,” Saylor said.

Saylor, an advocate for Bitcoin (CRYPTO:BTC) adoption, argued that holding Bitcoin as a treasury asset could help companies combat inflation and currency debasement.

He emphasised that while Bitcoin might not be suitable for every business due to varying financial goals and regulatory concerns, companies with excess cash reserves should consider it as part of their treasury strategy.

MicroStrategy, under Saylor’s leadership, has aggressively accumulated Bitcoin, with its holdings reaching 386,700 BTC.

Saylor also speculated that even traditional investors like Warren Buffett could be persuaded to adopt Bitcoin. 

“I’d be willing 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. Charlie [Munger] would have liked it. We’re going to buy some,” he stated.

He further offered to assist companies with large cash reserves to explore Bitcoin as an alternative asset. 

“I will go visit you and provide you with all of the information you need in order to be convinced that you should flip to the Bitcoin standard,” Saylor added, underlining his belief in Bitcoin as a superior asset for wealth preservation.

At the time of reporting, the Bitcoin (BTC) price was $96,750.05.