Michael Saylor Says Bitcoin Goes to $1M if Strategy Buys 5% of BTC Supply and $10M at 7%

Michael Saylor has highlighted the exponential growth trajectory of Bitcoin, highlighting how the firm spends more fiat for fewer BTC.

Saylor, who is the executive chairman of Strategy, shared this sentiment in his appearance on episode 641 of the Breakdown podcast, hosted by David Gokhshtein. The Bitcoin evangelist discussed Bitcoin’s price trajectory and how it has become increasingly expensive over time.

More Fiat for Less Bitcoin

Notably, Strategy (formerly MicroStrategy) started its Bitcoin HODL strategy in August 2020, acquiring 21,454 BTC for $250 million at an average price of $11,654 per coin. Interestingly, the asset’s price has since surged 7.7x to its current market price above $90,000. Meanwhile, it would have been a staggering 10.8x from its all-time high of $126,200 in October.

Led by Saylor, Strategy has now acquired 671,268 BTC at an average price of $74,972 per coin. The self-acclaimed Bitcoin development firm did this with $50.3 billion, which would have cost about $7.8 billion had they bought it all in their first purchase over five years ago.

Saylor highlighted this exponential capacity in his recent podcast with Gokhstein. He noted that Strategy spent $50 billion to acquire approximately 3.2% of Bitcoin’s total supply. However, the same $50 billion would not get them another 3.2%; it would get the firm far less.

Saylor says probably less than 1%. However, math shows it could be far more. At $90,000, $50 billion would buy 555,555 BTC, about 2.64% of the asset’s total supply. Nonetheless, the bottom line is that when they realize such capital again, Bitcoin may have grown beyond its current price level.

Additionally, it means that Bitcoin has a proven record of price spikes, consequently requiring more and more fiat to buy.

“I am buying something getting exponentially more expensive using exponentially more money,” he stated.

Bitcoin to $1M at 5% Supply

Meanwhile, Saylor plans to keep buying more despite Bitcoin’s rising price. He added that Strategy plans to buy between 5% and 7.5% of the total supply and then “exponentially slow down” thereafter.

However, he believes BTC might have exploded to higher valuations by then. Per his predictions, the cryptocurrency would reach $1 million per coin when Strategy buys up to 5% of its supply, and $10 million per coin when it buys up to 7% of its supply. Notably, several industry leaders have predicted that these prices would one day become realistic for BTC.

Interestingly, Saylor sees Bitcoin getting more concentrated among the OGs. He added that with $100 billion in inflows from BlackRock’s iShares Bitcoin Trust (IBIT) and $50 billion from Strategy, about 85% of its supply is held by OGs.

When the next $1 trillion from institutional adoption comes in, this number may reduce to 75%. Furthermore, he sees Strategy as powering the Bitcoin network up and pushing against an exponentially hardening asset.