tl;dr
In a recent earnings call, MicroStrategy CEO Michael Saylor hinted at caution regarding mergers and acquisitions (M&A) in the Bitcoin treasury sector, citing prolonged timelines and uncertainty. While the company has no current M&A plans, Saylor left the door open for future opportunities. This foll...
**MicroStrategy’s Michael Saylor Hints at Caution on Bitcoin Treasury M&A, Cites Uncertainty**
Michael Saylor, chairman of MicroStrategy, has signaled the company’s reluctance to pursue mergers and acquisitions (M&A) in the Bitcoin treasury sector, citing the “uncertainty” and extended timelines often associated with such deals. However, he stopped short of ruling out future acquisitions entirely, leaving room for potential shifts in strategy.
During MicroStrategy’s third-quarter earnings call, Saylor emphasized that the firm has no current plans for M&A activity, even if it could be “potentially accretive.” “There’s just a lot of uncertainty, and these things tend to stretch out six to nine months or a year,” he told investors. He added that ideas that seem promising at the outset may lose their appeal over time, highlighting the risks of lengthy deals.
The comment comes as the Bitcoin treasury sector faces increasing competition. Analysts have speculated that companies in the space may need to consolidate to differentiate themselves as the number of players grows. A notable example is Strive, which became the first Bitcoin treasury firm to execute a merger in late September. Strive acquired rival Semler Scientific in an all-stock deal, combining their holdings to amass 11,006 BTC. This placed Strive among the top 12 public companies with the largest Bitcoin reserves, though it pales in comparison to MicroStrategy’s 640,808 BTC—a record for any company.
Despite the industry’s evolving landscape, Saylor and MicroStrategy CEO Phong Le remain focused on their core strategy. Le noted that M&A for software companies—MicroStrategy’s primary business—is “very difficult,” as hidden challenges often arise. He extended this sentiment to Bitcoin treasury acquisitions, suggesting that the complexities of integrating such businesses could outweigh potential benefits.
MicroStrategy’s approach to Bitcoin has been central to its business model. Saylor argued that the company’s consistent Bitcoin purchases over the years have created a transparent and predictable framework for investors. “Our focus is to do high-speed transparent digital transactions and sell digital credit and buy Bitcoin,” he said, emphasizing that the model’s clarity allows analysts to easily assess its value.
However, the company’s credit rating from S&P Global Ratings reflects the risks associated with its Bitcoin holdings. S&P assigned MicroStrategy a “B-” rating, placing it in the speculative, non-investment-grade category. Notably, the rating did not account for the company’s Bitcoin reserves, which were deducted from its equity. Le acknowledged that improving the rating would require Bitcoin to be recognized as a capital asset rather than a liability.
While Saylor stressed that MicroStrategy’s current strategy prioritizes digital credit sales, balance sheet improvements, and Bitcoin purchases, he did not entirely dismiss the possibility of future acquisitions. “I don’t think we would ever say ‘we would never, never, never, ever,’ but what we would say is the plan, the strategy, the focus is… to buy Bitcoin and communicate that to investors,” he said.
As the Bitcoin treasury sector continues to mature, MicroStrategy’s cautious stance underscores the challenges of navigating a market defined by volatility and regulatory uncertainty. For now, the company remains anchored to its transparent, Bitcoin-centric model—leaving the door open for change, but not the door for immediate action.