According to a report from The Block, in a recent interview with analysts at Bernstein, MicroStrategy’s Co-Founder and Executive Chairman, Michael Saylor, outlined the company’s bold ambition to become the leading bitcoin bank globally. Since 2020, MicroStrategy has aggressively pursued Bitcoin acquisitions, utilizing both debt and equity to enhance returns. As of September 2024, the firm holds 252,220 BTC, valued at over $15 billion, making it the largest corporate holder of Bitcoin in the world. With a total acquisition cost of approximately $9.9 billion and $4 billion in debt, MicroStrategy owns about 1.2% of Bitcoin’s total supply.
Saylor articulated that Bitcoin represents a revolutionary form of digital capital, serving as a hedge against inflation and a long-term store of value. He characterized Bitcoin as the best-performing asset of the 21st century and noted its volatility, which he believes draws in investors looking for high returns. Saylor envisions MicroStrategy’s ultimate goal as establishing a bitcoin-driven financial powerhouse, or “bitcoin bank,” that offers various bitcoin capital market instruments, including equity, convertibles, fixed income, and preferred shares.
He speculates that as Bitcoin gains prominence, MicroStrategy could eventually amass hundreds of billions in Bitcoin, potentially evolving into a trillion-dollar company. Saylor forecasts that Bitcoin might reach $13 million per coin by 2045, capturing 7% of global financial capital. The firm’s strategy is centered around raising capital through debt, equity, and other financial instruments in U.S. capital markets, with Saylor asserting that the company’s debt strategy is “infinitely scalable.”
Instead of lending out its Bitcoin holdings like traditional banks, MicroStrategy prioritizes “lending to Bitcoin” by investing directly in the cryptocurrency. Saylor explained that the company benefits from low-cost debt, which allows it to purchase Bitcoin and achieve returns as high as 50% annually. He contends that lending to individuals, corporations, and governments carries greater risk than investing in Bitcoin.
Saylor’s vision also involves encouraging other firms in the crypto space, such as miners and exchanges, to adopt Bitcoin as a treasury reserve asset. He pointed to companies like Marathon and Semler Scientific as examples of organizations that have embraced this strategy. Saylor anticipates that more companies will adopt similar approaches as Bitcoin’s value continues to rise and its significance in the global financial landscape expands.
