The ultimate goal of MicroStrategy, according to its founder Michael Saylor, is to transform into a leading Bitcoin bank with a market value of $1 trillion, Saylor said in an interview with Bernstein, reports The Block.
The business analytics software provider began purchasing Bitcoin for its balance sheet in August 2020. The latest acquisition of 7,420 BTC in September brought the company’s Bitcoin reserves to 252,220 BTC, valued at $15.5 billion. This makes MicroStrategy the largest corporate Bitcoin holder in the world. The company has spent $9.9 billion on digital currency.
Saylor believes that Bitcoin is the “most valuable asset in the world” and that it will enable MicroStrategy to evolve into a trading bank or a financial company. The company plans to create tools for Bitcoin capital markets, such as stocks, convertible bonds, and other securities.
In September, Saylor highlighted that over four years of Bitcoin accumulation, MicroStrategy’s stock has outperformed Bitcoin itself by nearly three times in terms of returns.
#HODL ON pic.twitter.com/ZyBLUvu1d5
— Michael Saylor⚡️ (@saylor) September 30, 2024
The entrepreneur sees an opportunity to build a company with a 100% premium to Bitcoin, which could reach a market valuation of $300–400 billion by offering investors the largest options and equity markets.
“And then we’ll essentially start nibbling at fixed-income segments and just keep buying more Bitcoin. It will grow to millions per coin, and we’ll grow to a trillion,” said Saylor to Bernstein’s senior analyst Gautam Chughani.
MicroStrategy’s founder also believes that the company will continue to raise debt funding for Bitcoin purchases. Saylor predicts that the average annual return on Bitcoin will be 29%, allowing the company to continue its arbitrage strategy in the Bitcoin capital markets.
“I find it much more sensible to borrow $1 billion in fixed-income instruments and invest it in Bitcoin at 50% annual returns with no counterparty risk than to find someone willing to pay me 12–14%,” he added.
Despite analysts’ predictions about the possible launch of cryptocurrency lending by MicroStrategy, Saylor stated that this is less profitable and riskier than offering indirect investment tools for Bitcoin.
“Instead, we believe the best idea is to borrow $10 billion from people who are happy to lend and give them 100 basis points more yield, then invest in Bitcoin at 30–50% annual returns,” said Saylor.
As a reminder, in February, the founder of MicroStrategy announced plans for the company to position itself as a developer of cryptocurrency-based products.
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