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Since 2020, MicroStrategy founder and executive chairman Michael Saylor has turned his company into a Bitcoin pioneer, amassing over 252,000 BTC. Now he sees an even bigger opportunity. In a recent presentation to Bernstein analysts, Saylor announced his ultimate project: turning MicroStrategy into a $1 trillion “Bitcoin bank.” His strategy is based on the bold belief that Bitcoin as a deflationary asset will redefine global financial markets.
From BTC accumulation to Bitcoin bank
MicroStrategy's approach relies on mass accumulation of Bitcoin. The company has used debt and equity to finance acquisitions for years.
This strategy has allowed MicroStrategy to accumulate a huge amount of Bitcoin, equivalent to approximately 1.2% of today's global supply.
However, Mr. Thaler believes that this is not the end, and that this accumulation is the first step. For him, the growth potential of BTC is immense and he envisions an exponential price increase of up to millions of dollars per BTC.
Saylor's concept for a Bitcoin bank is not a traditional bank. Unlike institutions that lend money, MicroStrategy plans to borrow these funds at low interest rates to invest in BTC.
The idea is simple. It capitalizes on Bitcoin's perceived appeal as a hedge against inflation, generating an estimated average annual return of 29%. By increasing its holdings through this method, MicroStrategy aims to not only maximize profits but also establish itself as a major player in the BTC capital market.
This “Bitcoin Bank” model is gaining momentum. Saylor plans to use a variety of financial instruments such as stocks, convertible securities, and bonds to raise long-term funds and convert them into his BTC holdings.
He said this approach could create a company worth $300 billion to $400 billion, thanks to Bitcoin accumulation and speculation about its future value.
bold vision
For Michael Saylor, Bitcoin is more than just an asset. He describes it as the best-performing asset of this century and believes it will transform the global financial system.
In fact, Thaler predicts that Bitcoin could account for 7% of the world's financial capital by 2045, meaning the price of one Bitcoin would be $13 million. Masu.
Such recognition will propel MicroStrategy to new heights, allowing it to become one of the world's largest holders of Bitcoin and establish itself as a leading institution in the field.
Saylor believes the traditional banking model is outdated compared to the potential of Bitcoin. In his view, current financial institutions are limited by restrictive lending models and assets whose value is subject to inflation.
In contrast, MicroStrategy is positioned to take advantage of Bitcoin's digital scarcity and deflationary nature. According to him, this approach is not only profitable, but also infinitely scalable. For MicroStrategy, a drop in BTC price represents a buying opportunity, and each rise increases the value of the asset.
From this perspective, it is clear that everything depends on the future value of Bitcoin, although the risks are high. In fact, Saylor believes MicroStrategy will have an unparalleled pool of capital if Bitcoin continues to grow.
That way, the company could afford to raise tens or even hundreds of billions of dollars while continuing to accumulate BTC. This ambitious strategy could redefine the role of companies in the crypto world and pave the way for new financial models. Also discover how these two giants are rushing into Bitcoin.
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Disclaimer
The views, ideas and opinions expressed in this article are solely those of the author and should not be construed as investment advice. Please do your own research before making any investment decisions.