In a recent interview with Bernstein analysts, MicroStrategy co-founder and executive chairman Michael Saylor spoke about the company's ambitious vision to become the world's leading Bitcoin bank, as reported by The Block. revealed. Since 2020, MicroStrategy has been actively acquiring Bitcoin using debt and equity to maximize profits. As of September 2024, the company holds 252,220 BTC, worth over $15 billion, making it the world's largest Bitcoin holder. With a total acquisition cost of approximately $9.9 billion and debt of $4 billion, MicroStrategy owns approximately 1.2% of the total Bitcoin supply.
Saylor explained that Bitcoin is an innovative form of digital capital that provides a hedge against inflation and a long-term store of value. He described Bitcoin as the best-performing asset of the 21st century, stressing that he believes its volatility attracts investors looking for high returns. MicroStrategy's ultimate goal is to create a Bitcoin-led financial powerhouse, or “Bitcoin bank,” offering Bitcoin capital markets products across stocks, convertibles, bonds, and preferred stocks, Saylor said.
Saylor believes that as Bitcoin's profile grows, MicroStrategy could eventually hold hundreds of billions of dollars in Bitcoin and create a trillion-dollar company. He predicted that Bitcoin would reach $13 million per coin by 2045, representing 7% of the world's financial capital. The company's strategy relies on raising capital through debt, equity and other means in the U.S. capital markets, and Thaler believes the company's debt strategy is “infinitely scalable.”
MicroStrategy focuses on “lending to Bitcoin” by investing in the cryptocurrency itself, rather than lending out its Bitcoin holdings like traditional banks. Thaler explained that the company benefits from low-cost debt, which can be used to buy Bitcoin and earn returns as high as 50% annually. He argued that lending to individuals, businesses, and governments is riskier than investing in Bitcoin.
Saylor's vision includes influencing other companies in the crypto ecosystem, such as miners and exchanges, to adopt Bitcoin as a treasury reserve asset. He cited companies such as Marathon and Semler Scientific as examples of companies taking this approach. Thaler predicts that more companies will follow suit as the value of Bitcoin continues to rise and its importance to the global financial system grows.
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