Michael Saylor, Co-Founder and Executive Chairman of business intelligence software company MicroStrategy Inc. (NASDAQ: MSTR), recently stressed the importance of Bitcoin for Argentinians amidst a financial crisis.
In August 2020, MicroStrategy announced that it had invested in Bitcoin, purchasing 21,454 bitcoins for $250 million as a “primary treasury reserve asset.”
Saylor said at the time:
“Our decision to invest in Bitcoin at this time was driven in part by a confluence of macro factors affecting the economic and business landscape that we believe is creating long-term risks for our corporate treasury program ― risks that should be addressed proactively.“
By April 5, 2023, MicroStrategy had increased its Bitcoin holdings to 140,000 bitcoins, acquired for approximately $4.17 billion at an average price of $29,803 per bitcoin.
Saylor, now an ardent Bitcoin advocate, tweeted on April 22, 2023, “If you live in Argentina🇦🇷 right now, you need #bitcoin.”
Argentina’s economic situation has been deteriorating, with soaring inflation rates affecting the cost of living and increasing poverty. According to a Reuters report published on April 14, 2023, Argentina’s annual inflation rate reached 104.3% in March, marking the fastest monthly rise since 2002. This has led to an erosion of salaries and spending power, with nearly 40% of the population living in poverty.
The country is also struggling with one of the worst droughts in its history, significantly impacting soy, corn, and wheat crops. This has resulted in billions of dollars in economic losses due to reduced exports and increased domestic prices.
The Reuters report also mentioned that Presidential spokeswoman Gabriela Cerruti had acknowledged the challenges faced by Argentinians on Twitter, stating, “We know, it hurts us, it occupies us, how this affects daily life and every family.” She expressed hope for a downward trend in inflation to be “reflected soon.”
Saylor’s tweet highlights the potential of Bitcoin as a hedge against inflation and financial instability for Argentinians facing this challenging economic climate.