Bitrabo Editorial
In a recent talk with analysts from Bernstein, Michael Saylor, the founder of MicroStrategy, shared his bold plans for the company, aiming to establish it as a premier Bitcoin (BTC) banking institution.
Saylor highlighted the significance of BTC as a vital asset during the interview, expressing his ambition to make MicroStrategy a leader in Bitcoin financial services.
Becoming a Top Bitcoin Financial Entity
Insights from Gautam Chhugani, Bernstein’s head of digital assets, revealed that MicroStrategy’s main business approach focuses on developing capital market products associated with Bitcoin.
This strategy encompasses equities, convertible bonds, fixed income, and preferred stock. Saylor foresees a future where the company could manage a considerable amount of Bitcoin-backed financial instruments, estimating a potential accumulation of $100 billion to $150 billion in BTC assets. He explained his broader vision:
This is the most valuable asset in the world. The ultimate goal is to be the leading Bitcoin bank, or merchant bank, or you can call it a Bitcoin financial company.
Saylor laid out an exciting financial plan, suggesting strategic development could elevate MicroStrategy’s market valuation to between $300 billion and $400 billion while consistently increasing its Bitcoin holdings.
MicroStrategy’s Ambition for a $100 Trillion Market
Saylor’s long-term conviction is that Bitcoin will emerge as the foremost deflationary currency. Currently, Bitcoin constitutes roughly 0.1% of the global financial market, but he anticipates this could ascend to 7% by 2045, potentially reflecting a valuation of $13 million per coin.
Analysts at Bernstein noted that should US capital markets allow MicroStrategy to leverage multiple financial instruments, the company would seek to capitalize on the variances between US dollar capital markets and BTC.
When addressing the scalability of their debt approach, Saylor expressed optimism, stating: “I think it’s infinitely scalable. I don’t think we’ll have any problem raising another $100 billion or even $200 billion of capital after that.”
He considers Bitcoin a trillion-dollar asset class ready for expansive growth, with projections estimating it could escalate to $10 trillion and possibly reach a market size of $100 trillion.
To substantiate his Bitcoin growth predictions, Saylor presented an extensive analysis of the cryptocurrency market, forecasting an annual growth rate of 44% for the next four years, gradually decreasing to 30%. He ultimately believes BTC will yield returns exceeding those of the S&P 500 by 8%.
As of now, Bitcoin trades at $62,300, with a nearly 3% increase over the last 24 hours, having briefly dipped below the crucial $60,000 level amid a broader market correction on Thursday.
Featured image from DALL-E, chart from TradingView.com