MicroStrategy, led by Michael Saylor, has become the largest corporate holder of Bitcoin, with an aggressive acquisition strategy since 2020. With 252,220 BTC, valued at over $15 billion, the company’s strategy revolves around the long-term potential of Bitcoin as a deflationary asset.
Saylor’s endgame for MicroStrategy is to transition into a “Bitcoin bank,” a financial institution that bridges traditional capital markets with Bitcoin capital instruments, he said in a recent interview with Bernstein
Saylor envisions Bitcoin becoming a trillion-dollar asset class, positioning MicroStrategy as a major player in the Bitcoin finance sector by creating equity, debt, and convertible market instruments backed by Bitcoin.
The company’s success, Saylor argues, lies in leveraging the volatility and appreciation of Bitcoin to outperform traditional financial assets, with an ultimate goal of managing hundreds of billions in Bitcoin.
Instead of adopting a traditional banking model of lending Bitcoin, MicroStrategy focuses on borrowing from capital markets and investing directly in Bitcoin. Saylor emphasizes that Bitcoin’s annual growth potential offers attractive returns without the counterparty risk that traditional lending involves.
MicroStrategy’s unique position in both the USD and Bitcoin markets, along with its ability to access low-cost debt, makes its strategy difficult to replicate. While other companies in the crypto space are gradually following suit, Saylor remains confident that Bitcoin’s growth will make his firm’s model highly scalable.
