MicroStrategy's long-term vision is to become a Bitcoin (BTC) financial hub, according to founder Michael Saylor.
During a chat hosted by Bernstein on Wednesday, Saylor outlined his ambitious plans, positioning the company as a “Bitcoin bank” or “merchant bank,” though not in the traditional sense of lending BTC.
According to Bernstein, MicroStrategy, one of the world’s largest BTC holders, has amassed a $16 billion Bitcoin stash, representing about 1.3% of the world’s supply. The company’s strategy has been to issue debt and use the proceeds to purchase BTC, believing that Bitcoin’s value will increase over time as inflation reduces the purchasing power of fiat currencies.
Saylor predicted that by 2045, Bitcoin could account for 7% of the world’s financial capital, a significant increase from the current 0.1%. At that level, he suggested, Bitcoin’s price could reach $13 million per coin.
“BTC wants to borrow your money. Lend your capital to Bitcoin and get back in Bitcoin,” Saylor said at a client event. He said borrowing from the fixed income market to invest in Bitcoin offers better returns than traditional lending.
“Lending to individuals, companies, and governments is riskier than lending to BTC,” he added. But MicroStrategy does not currently plan to lend out Bitcoin assets. Instead, Saylor proposed borrowing $10 billion from BTC holders, offering them up to 1% higher yield, and then using that capital to “lend on Bitcoin” at up to 50% interest with minimal counterparty risk.
Founded in 1989 as a software company, MicroStrategy began buying Bitcoin in 2021 and has since become a major player in the cryptocurrency market. The stock now acts as a de facto proxy for BTC, attracting investors looking to gain exposure to BTC.
Saylor argued that Bitcoin has gained legitimacy as traditional financial firms invest and regulators provide support. “You’re watching the birth of a new asset class,” he said. He explained that Bitcoin’s journey has evolved from idealism, through volatile “crazy years” to its current state of institutional and corporate adoption.
“For the first time in 100 years, we have a new asset class and a new way of thinking about money and capital that is being embraced by regulators,” Saylor said, referring to the approval of Bitcoin spot ETFs in the U.S. and Wall Street’s ability to store Bitcoin.
According to Saylor, the increasing acceptance of BTC by US presidential candidates is another positive indicator as it points to mainstream political support. Saylor believes that this momentum signals the beginning of a “digital gold rush.”
Saylor predicts that starting in 2025, investors will have a decade to acquire Bitcoin before it becomes rare on the open market. He predicts that 99% of BTC will have been mined and sold by 2035. “By the time you get to January 1, 2035, only 1% of BTC will have flowed out over the course of 106 years. That’s less than what MicroStrategy currently has,” he said.
*This is not investment advice.
