Michael Saylor, founder and executive chairman of MicroStrategy, has set a bold goal for the company to become the leading Bitcoin bank.
In a recent interview, Saylor outlined a strategy that positioned MicroStrategy as a critical player in Bitcoin-related capital markets, offering various financial instruments tied to the cryptocurrency. His long-term vision is to transform the company into a trillion-dollar enterprise by leveraging Bitcoin’s growing dominance in global finance.
MicroStrategy’s strategic approach to Bitcoin
Saylor believes Bitcoin is the highest-performing asset of the century and aims to make it the core of MicroStrategy’s future. He envisions a company that issues equity, convertibles, fixed income, and preferred shares, all linked to Bitcoin. MicroStrategy has been steadily increasing its Bitcoin holdings, and Saylor expects this strategy to yield significant returns as Bitcoin becomes a larger part of institutional and retail investment portfolios. Saylor predicts that Bitcoin, which currently accounts for only 0.1% of global financial capital, will rise to 7% by 2045, fueling massive demand for the cryptocurrency.
Borrowing to buy more Bitcoin
Rather than using a traditional banking model where Bitcoin is loaned out, Saylor’s strategy focuses on borrowing money to acquire more Bitcoin. He argues that Bitcoin’s underlying growth rate justifies the company’s borrowing approach. Saylor sees borrowing from capital markets and investing the funds into Bitcoin as less risky than lending to governments, corporations, or individuals. He expects Bitcoin returns to range between 30% and 50%, with even the most conservative scenario suggesting a 22% annual growth over the next decade.
MicroStrategy’s plan involves raising substantial capital through debt and equity markets to continue purchasing Bitcoin. Saylor believes that if the company can secure $50 billion through various financial instruments, it could hold up to $150 billion in Bitcoin. He expects this to propel MicroStrategy’s market value to between $300 billion and $400 billion, with a potential long-term valuation of over $1 trillion.
Future growth and long-term outlook
Saylor’s confidence in Bitcoin’s future value underpins his plan to expand MicroStrategy’s role in capital markets. He predicts Bitcoin could eventually become a $100 trillion asset class, with prices reaching as high as $13 million per coin in the coming decades. Saylor is optimistic that MicroStrategy will continue raising billions of dollars from U.S. capital markets, allowing it to scale up its Bitcoin holdings significantly.
Saylor views Bitcoin as the ultimate form of digital capital and believes that MicroStrategy’s strategy of borrowing to buy more Bitcoin will secure the company’s place as a dominant player in the financial world. While the approach carries risks tied to Bitcoin’s volatility, Saylor remains confident that Bitcoin’s long-term trajectory will justify the company’s ambitious plans.