KEY POINTS
- Saylor told Bernstein analysts that the goal is to become a $1 trillion Bitcoin bank
- He reiterated that it all boils down to one's belief in $BTC as 'something' or 'nothing'
- MSTR has soared 1,620% since it adopted its Bitcoin strategy in August 2020
MicroStrategy is known for its Bitcoin strategy that some traditional firms initially had a negative reaction to, but years later, the tech firm founded by Michael Saylor has become one of the top corporate holders of BTC and so far, its investments are paying off well.
In what could be the first known discussion of how Saylor actually sees his company's endgame, the tech executive revealed that ultimately, MicroStrategy aims to become a leading "Bitcoin bank."
MicroStrategy = A Bitcoin Bank
Saylor recently told analysts at research and brokerage firm Bernstein that MicroStrategy will continue to put money in its BTC strategy, and in the end, the world's top digital currency by market value will be the core of its business.
Earlier this year, the software firm said it will transition into a "Bitcoin development company," but come October, things have stepped up.
"This is the most valuable asset in the world. The endgame is to be the leading Bitcoin bank, or merchant bank, or you could call it a Bitcoin finance company," Saylor told Bernstein analysts.
"If we end up with $20bn of converts, $20bn of preferred stock, $10bn of debt and say $50bn of some kind of debt instrument and structures instrument, we'll have $100-150bn of Bitcoin," he said.
The Road to $1 Trillion
Saylor further explained that MicroStrategy currently trades at a 50% premium. With increased volatility and ARR (annual recurring revenue), he sees the company reaching a 100% premium to $150 billion worth of Bitcoin, and later, MicroStrategy will become a $300-400 billion company "with the biggest options market, the biggest equity market."
"Then we basically start to chew into the fixed income markets, and we just keep buying more Bitcoin. Bitcoin is going to go to millions a coin, you know, and then we create a trillion dollar company," he projected.
When asked regarding MicroStrategy's debt strategy and its scalability, Saylor explained that he doesn't see any problem with raising $100 billion more in capital, and even going higher afterward.
"The risk is very simple – it's Bitcoin. You either believe Bitcoin is something, or you believe it's nothing," he argued. Saylor is a renowned BTC maximalist – an individual whose belief in the digital coin's potential can range from high to extreme.
Following news of Saylor's plan to eventually transition his company into a Bitcoin bank, MSTR stock climbed by nearly 30%.
MicroStrategy's Four-Year $BTC Strategy Gamble
Saylor's company implemented its Bitcoin strategy in August 2020. Since then, MSTR shares skyrocketed by 1,620%, as per a chart posted by Saylor on Sunday.
If you want to win, you need a #Bitcoin Strategy. pic.twitter.com/nFDYSNNurh
— Michael Saylor⚡️ (@saylor) October 13, 2024
MSTR is leading NVIDIA, Arista Networks, Quanta Services, many others on the S&P 500 as of data from Aug. 10, 2020, through Oct. 11, 2024. "If you want to win, you need a Bitcoin strategy," Saylor wrote on X.
It remains to be seen whether MicroStrategy will be able to pull off its dream of becoming a leading BTC bank. For now, its Bitcoin gamble is paying off, despite doubts from traditional finance experts and crypto volatility.
Bitcoin prices surged overnight. As of early Monday, BTC is trading above $64,000 from being in the red throughout the weekend and struggling to hit $63,000.
