Highlights:
- MicroStrategy aims to become a leading Bitcoin bank, creating diverse capital market instruments.
- The company plans to hold $150 billion in Bitcoin by borrowing $50 billion in various forms of debt.
- Michael Saylor believes Bitcoin could grow into a $100 trillion asset class.
MicroStrategy founder Michael Saylor has unveiled ambitious plans to become a leading Bitcoin bank. The company primarily aims to create Bitcoin capital market instruments, including stocks, convertible stocks, fixed income, and preferred stocks. This strategy aims to provide powerful tools for inflation hedging and long-term value storage.
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MicroStrategy founder Michael Saylor said that MicroStrategy's ultimate goal is to become a leading Bitcoin bank. Its core business is to create Bitcoin capital market instruments covering stocks, convertible stocks, fixed income and preferred stocks, providing powerful tools for…
— Wu Blockchain (@WuBlockchain) October 11, 2024
MicroStrategy Aims for $150 Billion in Bitcoin Holdings
Since 2020, MicroStrategy has been actively acquiring Bitcoin and now holds 252,220 Bitcoins. Michael Saylor firmly believes that Bitcoin is the top-performing asset of the century. He envisions it as the ultimate digital capital, capable of outpacing inflation and securing long-term value.
Saylor predicts that the company can secure $20 billion in convertible debt, $20 billion in preferred stock, and $10 billion in other forms of debt. MicroStrategy could hold up to $150 billion in Bitcoin with these funds. He believes the company could achieve a valuation between $300 billion and $400 billion from this position. Consequently, MicroStrategy could dominate both the equities and options markets.
MicroStrategy Borrows to Boost Bitcoin Holdings
MicroStrategy’s approach involves borrowing funds to purchase additional Bitcoin rather than lending out its existing holdings. Michael Saylor sees Bitcoin’s underlying growth rate as a compelling reason to continue borrowing. Therefore, he has no plans to lend any of the company’s Bitcoin assets.
He believes it is prudent to borrow from lenders who are willing to provide capital. The company can secure the necessary funds by offering a slightly better yield. This money is then invested into Bitcoin. Saylor suggests that Bitcoin can bring in 30% and 50% returns.
He stated:
“Even the bear-case scenario for Bitcoin is a 22% annual growth over the next decade.”
Saylor Sees Bitcoin as a Trillion-Dollar Asset Class
Saylor is confident that Bitcoin is a trillion-dollar asset class, potentially growing to $10 trillion or even $100 trillion. He is adamant that MicroStrategy can raise $100 billion or more in the coming years.
He added.
“The risk is very simple. It’s Bitcoin. You either believe it’s something, or you believe it’s nothing.”
According to Bernstein digital asset lead Gautam Chhugani, Saylor sees MicroStrategy as a Bitcoin bank. The company focuses on creating Bitcoin capital market instruments across equities, convertibles, fixed income, and preferred shares. The firm’s strategy is based on its long-term belief in Bitcoin as the best deflationary money.
MicroStrategy Positions Itself for Bitcoin’s Predicted Surge
Currently, Bitcoin accounts for approximately 0.1% of global financial capital. Michael Saylor predicts this share could rise to 7% by 2045, implying a significant increase in Bitcoin’s value. Therefore, MicroStrategy is positioning itself to capitalize on a future in which Bitcoin becomes essential to institutional and retail portfolios.
MicroStrategy’s aggressive strategy reflects a firm conviction in Bitcoin’s potential to transform the financial landscape. The company aims to become a dominant player in the cryptocurrency market by borrowing to accumulate more Bitcoin. Michael Saylor’s vision positions MicroStrategy to benefit from Bitcoin’s growth and eventually become a trillion-dollar company.
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