October 
14, 2024 [crocon media – msc] MicroStrategy, under the leadership of its founder and executive chairman, Michael Saylor, is positioning itself to become a dominant force in the Bitcoin banking sector. Saylor recently shared the company’s ambitious vision with analysts at Bernstein, revealing a strategic endgame that sets MicroStrategy apart from traditional banking models.
The strategy? Borrow capital at low rates, offer slightly better returns to lenders, and funnel the proceeds into Bitcoin. Since 2020, MicroStrategy has gone all-in on Bitcoin, leveraging both debt and equity to build up a massive BTC reserve. The company now owns 252,220 Bitcoin, valued at over $15 billion, with an investment cost of $9.9 billion. This makes MicroStrategy the largest corporate holder of Bitcoin globally, controlling about 1.2% of the total Bitcoin supply.
Saylor is a staunch advocate for Bitcoin, calling it the top-performing asset of the 21st century and predicting it could reach $13 million per Bitcoin by 2045. He views the cryptocurrency as a hedge against inflation and a long-term store of value, positioning MicroStrategy as a pioneer in this evolving financial space.
The firm’s bold strategy diverges from traditional banking models. Rather than lending to individuals or businesses, Saylor believes Bitcoin offers a more secure investment with less counterparty risk. As part of this plan, MicroStrategy intends to keep borrowing from the fixed-income market and continue investing heavily in Bitcoin, aiming for an average annual return of 29%.
Scaling this approach is no small feat, but Saylor remains confident that MicroStrategy can raise the capital needed to grow its portfolio and potentially achieve a trillion-dollar valuation. He even suggested that other players in the space, such as Bitcoin miners and exchanges, might follow suit—though he emphasized that MicroStrategy’s unique position is hard to replicate.
For the Bitcoin maximalists who criticize MicroStrategy’s business model, it’s time to rethink. This is exactly what Bitcoin advocates should be cheering for—a company driving mainstream adoption. Those who attack this approach might need to reassess their understanding of Bitcoin’s long-term potential.
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