MicroStrategy’s primary goal is to transform into a leading Bitcoin bank with a market capitalization of $1 trillion, as stated by the company’s founder Michael Saylor in an interview with Bernstein, reports The Block.
Since August 2020, MicroStrategy has been accumulating Bitcoin for its reserves. Its latest purchase of 7,420 BTC in September brought the company’s total Bitcoin holdings to 252,220 BTC. These assets are currently valued at approximately $15.5 billion, making MicroStrategy the largest corporate holder of Bitcoin worldwide. The company has spent a total of $9.9 billion on acquiring cryptocurrency.
Saylor believes Bitcoin is “the most valuable asset in the world” and sees it as a means to transform MicroStrategy into a trading bank or financial institution, offering instruments like its own shares, convertible bonds, and other securities in the Bitcoin capital markets.
He pointed out that over the four years of following this Bitcoin accumulation strategy, MicroStrategy’s stock price has grown nearly threefold, outperforming Bitcoin itself. According to Saylor, the company has the potential to reach a market value of $300-400 billion by offering the largest options and stock markets, with the possibility of eventually reaching $1 trillion.
Saylor is confident that the company will continue raising debt financing to buy more Bitcoin, projecting the cryptocurrency’s average annual return at 29%. He believes that investing in Bitcoin with a 50% annual return and no counterparty risk is more favorable than traditional fixed-income instruments.
Despite analysts from Benchmark predicting that MicroStrategy might launch cryptocurrency lending, Saylor dismissed the idea, calling it less profitable and riskier than providing indirect investment tools for Bitcoin.
Instead, he proposed a strategy of borrowing $10 billion under favorable conditions for further investments in Bitcoin with high returns.
It’s worth noting that in February, Saylor also announced that MicroStrategy would be positioning itself as a developer of cryptocurrency products.
