Important points
- MicroStrategy shares rose 10% after the company revealed plans to become a Bitcoin bank.
- Saylor envisions MicroStrategy as a leading Bitcoin bank that leverages Bitcoin's growth to dominate the market.
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MSTR (MicroStrategy) stock hit a high of $205 on Friday morning and has risen more than 10% in the past 24 hours, largely due to the company's bid to position itself as a Bitcoin bank, according to Yahoo Finance data. It is said to be driven by an ambitious strategy. This is the highest price for MSTR stock since March 2020, when it hit an all-time high of $313.
In a recent interview with Bernstein, Michael Saylor described the company as a major Bitcoin-focused financial institution, similar to a merchant bank, which could grow into a trillion-dollar company if the value of Bitcoin rises. He said he plans to turn it into a Bitcoin bank with the potential to become a Bitcoin bank.
“The ultimate goal is to become a major Bitcoin bank, or merchant bank, or Bitcoin financial company,” Saylor said.
According to Saylor, MicroStrategy plans to borrow funds through various capital market instruments and use the funds to invest in Bitcoin. He expects the average annual return from this investment strategy to be approximately 29%.
Thaler predicts that Bitcoin's value will soar to millions of dollars per coin in the future, valuing MicroStrategy at a staggering $300 billion to $400 billion, and potentially $1 trillion. There is a possibility that it will reach .
“If you end up with a $20 billion convertible, $20 billion of preferred stock, $10 billion of debt, and another $50 billion of some kind of debt or structured product, you’ll have $100 billion to $150 billion in Bitcoin. “We'll probably be able to put it in,” Saylor estimated.
“The company trades at a 50% premium and has more volatility and ARR, so we built a company with a 100% premium to $150 billion worth of Bitcoin, with the largest options market and the largest stock.” “You can build a $300 billion to $400 billion company with a “market,'' he said.
“And we'll basically start eating into the bond market and keep buying more Bitcoin. Bitcoin will be millions of dollars per coin, and we'll create a trillion-dollar company.”
Unlike traditional banks, MicroStrategy's forward-thinking Bitcoin bank does not lend Bitcoin. The bank's goal is to create a comprehensive suite of Bitcoin-based financial products, including stocks, bonds, and other investment products.
MicroStrategy has been actively acquiring Bitcoin for the past four years under Saylor's leadership. The company finances its Bitcoin purchases in a variety of ways, including through the use of debt and equity.
MicroStrategy's latest Bitcoin acquisition of 7,420 BTC brings the company's total holdings to 252,220 BTC, worth approximately $15 billion. MicroStrategy is currently the world's largest corporate holder of the flagship cryptocurrency, according to Bitcoin Treasury data.
The company's Bitcoin strategy has been a source of inspiration for other companies, including Metaplanet. The Japanese investment firm only announced its acceptance of Bitcoin earlier this year and has accumulated approximately 748 BTC so far.
Bitcoin acquisition boosted MicroStrategy's stock performance. MicroStrategy's stock price has soared more than 1,200% over the past four years. As Bitcoin continues to gain momentum and value, we expect MicroStrategy stock to remain closely tied to Bitcoin. Bitcoin performance, may lead to new Highest price in the near future.
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