The end game of micro strategy is to be the leading Bitcoin banker: Michael Saylor
MicroStrategy aims to become the world's leading Bitcoin bank, holding 252,220 BTC. The company invests the borrowed funds in Bitcoin, expecting 29% annual returns. Saylor's goal is to grow MicroStrategy into a trillion-dollar bitcoin-driven entity.
In an interview with analysts at the research and brokerage firm Michael Saylor Bernstein, founder and CEO of MicroStrategy, he expressed a clear vision of the company's future. According to Saylor, MicroStrategy aims to be the world's leading bitcoin bank.
Saylor believes that Bitcoin (BTC) is not only the high-performance asset of the 21st century, but also the cornerstone of a revolutionary financial system, and his ultimate goal is to leverage the potential of MicroStrategy to turn Bitcoin into a trillion dollar company (BTC).
Microstrategy Bitcoin stock strategy
MicroStrategy's recent purchase of 7,420 BTC illustrates its aggressive approach to bitcoin stocks, using both debt and equity to maximize returns. The company's total investment in BTC is estimated to have cost around $9.9 billion, alongside a $4 billion debt burden.
As a result, Microstrategy now controls 1.2% of the total Bitcoin supply, which strengthens its prominent position in the market.
Currently, with over 252,220 BTC in reserves, currently worth over $15 billion, Microstrategy holds the title of the largest corporate Bitcoin holder globally.
Saylor's long-term thesis is that Bitcoin's scarcity and volatility make it an excellent asset to hedge against inflation and store value. He foresaw that Bitcoin would eventually reach millions of dollars per coin, and with continued investment microstrategy could grow into a trillion dollar entity.
Saylor said the firm will further strengthen its role in the growing Bitcoin economy by issuing a variety of financial instruments such as equity, convertible debt and preferred stock linked to Bitcoin.
Saylor emphasizes the attractiveness of Bitcoin over traditional lending models. He argued that investing directly in Bitcoin and lending to individuals or corporations offers better returns with less risk than lending to individuals or corporations. It plans to continue borrowing microstrategy funds.
With widespread corporate Bitcoin adoption, the microstrategy model stands out. While other companies in the crypto space, such as Marathon and Block, adopt Bitcoin as their treasury strategy, MicroStrategy's focus and scale make it unique.
Saylor is confident that the microstrategy business model that connects traditional US dollar capital markets with Bitcoin will be difficult for others to replicate, positioning it as a pioneer in a Bitcoin-driven financial landscape.
A bitcoin bank that doesn't lend money
Unlike traditional banks that offer cash loans, MicroStrategy's business model focuses on lending money at low interest rates and investing the funds in Bitcoin.
By offering a slightly higher rate to lenders and expecting Bitcoin's annual growth to average around 29%, the company is positioned to outperform many conventional investments.
Saylor's strategy hinges on capital market arbitrage, a microstrategy that capitalizes on the difference between USD capital and Bitcoin appreciation, allowing them to generate high profits.
MicroStrategy's bold ambition to become a trillion-dollar bitcoin bank reflects Saylor's unwavering belief in bitcoin's potential as the world's most valuable asset.
