In a recent interview with Natalie Brunell, Michael Saylor compared Bitcoin’s current downturn to the prolonged recovery cycles of Apple and Amazon.
- Strategy is carrying more than $9 billion in unrealized losses tied to its Bitcoin holdings amid the current crypto market downturn.
- According to Saylor, “conventional wisdom” dictates that Bitcoin is a global digital asset but hasn’t gotten the endorsement from mainstream investors.
- He pointed to Apple’s P/E ratio rising from 10 to 30 after Carl Icahn and Warren Buffett endorsed the company.
Strategy (MSTR) Executive Chairman Michael Saylor compared Bitcoin (BTC) to Apple (AAPL) and Amazon (AMZN) in a recent interview, stating that major technological innovations often go through long “wilderness” periods and that even Apple took seven years to fully recover from its 2012 crash.
“It’s been 137 days since the last all-time high, that’s four and a half months – half the amount of time it takes to make a baby,” Saylor said during an interview with Natalie Brunell on Monday, noting that Bitcoin’s price has fallen nearly 50% since its peak of over $126,000 in October last year.
With Bitcoin retreating, MSTR’s balance sheet reflects an unrealized loss of more than $9 billion on its holdings.
Bitcoin Versus Apple, Amazon
Bitcoin’s price was down nearly 4% in the last 24 hours, trading at around $63,100 on Tuesday morning. On Stocktwits, retail sentiment around the apex cryptocurrency remained in ‘bearish’ territory over the past day.
Amid the current selloff, Bitcoin has fallen to the 13th rank among the most valuable assets by market capitalization. Meanwhile, Apple is currently the second-most valuable company in the world, after Nvidia (NVDA), with a market value of around $3.9 trillion and Amazon is also among the top five with a valuation of around $2.2 trillion.
Bitcoin’s ‘Wilderness’ Phase
Saylor said Apple faced a 13-year cycle from 2007 to 2020 to prove that it was the “greatest company of its era,” and took seven years to “fully recover” after falling 45% from its 2012 record high.
He added that Amazon went through the same trial-by-fire for seven to eight years before the stock clocked major gains. “You almost could have bought Amazon anytime for a decade while conventional investors crapped all over it,” he stated. “It wasn’t until 2020, during the lockdown, people go, ‘Oh wow, I guess we need Amazon.”
According to Saylor, Bitcoin, like Amazon and Apple, is currently in its ‘wilderness’ phase, where “conventional wisdom” holds that Bitcoin is a global digital capital asset but hasn’t yet received the endorsement of mainstream investors.
Bitcoin Needs Buffet, Icahn Type Endorsement
Saylor noted that Apple was being valued like a “tired cash cow” with its price-to-earnings ratio (P/E) dropping from 30 after the launch of the first iPhone in 2007, to under 10 during its 2013 45% crash.
“Apple takes 13 years peak to peak, the trough, the peak, seven years to recover,” he stated. “And you know what it took for people to give Apple the P/E of 30 again? The endorsement of Carl Icahn and Warren Buffett, two people who probably didn't even use the iPhone that much, if at all.”
According to Saylor, the broader market will eventually reach the same consensus for Bitcoin once a Buffer or Icahn-like “icon of the world” backs the digital asset. However, he also warned that at that point, it may be too late for the 10x or 50x gains traders are currently making from Bitcoin’s volatility.
MSTR’s stock fell 1.25% in pre-market trade on Tuesday amid Bitcoin’s selloff that triggered over $380 million in liquidations over the last 24 hours. On Stocktwits, retail sentiment around Strategy’s shares remained in ‘bearish’ territory over the past day.
Read also: Bitcoin's Price Drops Below $63K After IBM's Worst Day In 25 Years – Triggers $370 Million Liquidation Wave
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