Michael Saylor, the founder of MicroStrategy, has revealed what the business intelligence firm aims to achieve with its incessant Bitcoin purchases.
According to a Friday client note from brokerage firm Bernstein, MicroStrategy intends to ultimately become a Bitcoin bank. Bernstein’s digital asset lead, Gautam Chhugani, cited an interview with Saylor in the recent disclosure.
Michael Saylor has incessantly asserted that Bitcoin is a superior asset and the best in the 21st century. He often describes the largest cryptocurrency by market cap as a store of value and a proper hedge against inflation.
Notably, MicroStrategy’s Bitcoin strategy has become a template most companies adopt. The software firm adopted the premier asset as its primary treasury reserve in 2020 and has acquired 252,220 BTC at the time of writing. The Friday release has finally revealed Saylor and MicroStrategy’s broader picture in its ploy to purchase as much Bitcoin as it possibly can.
A Bitcoin Bank That Borrows And Not Lends
Saylor stated in the interview that MicroStrategy’s endgame was to become a Bitcoin bank or finance company. However, instead of lending, it intends to borrow fiat from individuals and corporate bodies to fund its insatiable Bitcoin purchase.
In return, MicroStrategy would offer them debt notes, shares of its stock, and other instruments with low-risk annual returns. Saylor noted that the business intelligence firm intends to acquire $100 billion to $150 billion worth of Bitcoin through these debt instruments.
MicroStrategy also intends to expand its debt strategy to the fixed-income market and acquire more funds to buy Bitcoin. Saylor noted that MicroStrategy will grow to a trillion-dollar firm as it acquires Bitcoin, and the asset grows to millions of dollars per coin.
Notably, Saylor had earlier predicted that Bitcoin would trade in seven to eight figures in the near future. He asserted that the premier asset will expand its global market share from 0.1% to at least 7%, driving its price to $13 million in 2045.
A Bet On Bitcoin, The Most Profitable
Furthermore, Saylor argued that it would rather lend to Bitcoin than to individual and corporate entities. According to him, Bitcoin would yield more return on investment than other entities; hence, the approach of borrowing rather than lending out its Bitcoin stash.
Saylor projected that Bitcoin would provide investors with an average annualized return of 22% over the next decade. Hence, he would rather increase his stash than depreciate it by lending to other entities, as none offers a similar interest rate.
This approach has been evident in MicroStrategy’s latest dealings, as they have raised $4 billion in debt notes to buy Bitcoin. Notably, the strategy has brought criticism and accolades alike to MicroStrategy and Saylor.
Meanwhile, Saylor sees more Bitcoin adoption in the future. Firms like Marathon Digitals, Metaplanet, and Semler Scientific have all adopted the premier asset as a primary store of value.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
