In a recent interview, Michael Saylor, founder of MicroStrategy, disclosed that the company aims to be the leading Bitcoin bank. During an interview with Bernstein analysts, he discussed the company’s plans for acquiring more Bitcoin. MicroStrategy holds more than 252,000 BTC, estimated to be around $15 billion.
MicroStrategy’s Bitcoin Growth Strategy
MicroStrategy plans to increase its Bitcoin investment to as much as $150 billion. Saylor is positive that Bitcoin’s growth will take the company to $1 trillion. Saylor said during the interview,
“This is the most valuable asset in the world. The endgame is to be the leading Bitcoin bank.”
The company does not focus on traditional lending, which involves borrowing money from individuals, providing a slightly higher rate, and investing that money in Bitcoin. According to Saylor, Bitcoin investments offer a 29% annual return and are more profitable and safe than lending.
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Current Bitcoin Holdings and Future Plans
MicroStrategy has been aggressively buying up Bitcoin since 2020, raising cash to fund the purchases mainly through debt and equity.
The company bought 7,420 BTC last month, reaching a total of 252,220 BTC by the end of the month. MicroStrategy holds 1.2% of Bitcoin’s maximum supply of 21 million, with a total cost of $9.9 billion and $3 billion in debt.
Saylor emphasized the scalability of MicroStrategy’s debt strategy, stating the company could easily raise $100 billion or more to continue acquiring Bitcoin.
Bitcoin as a Deflationary Asset and Market Impact
Bitcoin is the best performing asset of the 21st century, a hedge against inflation and a superior store of value, Saylor says. By 2045, he envisions Bitcoin accounting for 7% of global financial capital, which could lead to one Bitcoin worth $13 million. Asked about the risks, Saylor said,
“You either believe Bitcoin is something, or you believe it’s nothing.”
What makes MicroStrategy unique is its model for bridging the USD capital markets and Bitcoin markets. The company issues convertible notes and equity instruments that expose investors to Bitcoin’s volatility with downside protection.
Saylor’s Outlook on the Crypto Industry
Saylor also believes more companies should hold Bitcoin as a Treasury reserve asset. According to him, many firms are mismanaging their balance sheets. He said,
“They are destroying as much shareholder value with their balance sheets as they are creating with their P&L.”
He also believes Bitcoin capital markets could grow in the future with equity, convertibles, and fixed income from products backed by Bitcoin. MicroStrategy is the largest corporate Bitcoin holder and advocates for adoption across the industry.
Meanwhile, other firms, like Metaplanet, a Japanese investment company, follow MicroStrategy’s lead and steadily accumulate Bitcoin as a long-term investment strategy.
