Michael Saylor On MicroStrategy And The Bitcoin Effect

MicroStrategy Incorporated MSTR just reported its best second-quarter financial results in six years, MicroStrategy CEO Michael Saylor said Friday on CNBC's "Squawk On The Street."

What Happened: MicroStrategy announced quarterly earnings of $1.72 per share, which beat the estimate of $1.03 per share. The company reported quarterly revenue of $125.35 million, which beat the estimate of $120.45 million. 

Saylor told CNBC that MicroStrategy beat estimates on the top and bottom line as a result of the company's organic growth. He attributed the better-than-expected quarter to the "laser-like focus of the company on business intelligence."

The Bitcoin Effect: Bitcoin BTC/USD has "elevated our band by a factor of 100," Saylor told CNBC.

MicroStrategy announced that it acquired more than 13,000 Bitcoins for $529 million in the second quarter. The company said it plans to continue to acquire more Bitcoin moving forward.

Related Link: Why Does Bitcoin's Price Fluctuate? Crypto Expert Weighs In

Bitcoin is "digital real estate," Saylor said, adding it's better than normal real estate because of its scarcity, tax benefits and ability to move it around. 

MicroStrategy took on $2.2 billion in debt in order to buy Bitcoin.

Saylor told CNBC that the company pays about 1.5% interest on its debt. "Being a leveraged Bitcoin long company is a good thing for our shareholders," he said. "If I could borrow $1 billion and buy Facebook, Inc. FB a decade ago for 1% interest, I think I would have done quite well."

Alphabet Inc GOOGL GOOG created digital books, Facebook created digital communications, Apple Inc AAPL created digital music and Amazon.com Inc AMZN created digital retail, Saylor said, adding that Bitcoin is a digital property on an open monetary network. 

Bitcoin is "the most broadly held financial asset in the history of the world," he told CNBC. "It takes time to fully grasp the implications of something so profound."

Price Action: At last check Friday, MicroStrategy was up 0.16% at $626.01 and Bitcoin was up 0.56% at $40,258.30.

Photo by Pete Linforth from Pixabay.