MicroStrategy Plans to Increase Its Bitcoin Investment to $150 Billion, Targeting $1 Trillion Valuation

In a recent interview, Michael Saylor, founder of MicroStrategy, disclosed that the company aims to be the leading Bitcoin bank.

MicroStrategy, a business intelligence firm, is aiming to become the leading Bitcoin bank. In an interview with Bernstein analysts, Michael Saylor, the company's founder, discussed their plans for acquiring more Bitcoin.

Currently, MicroStrategy holds over 252,000 BTC, valued at around $15 billion. The company's strategy involves increasing its Bitcoin investment to as much as $150 billion. Saylor is optimistic that Bitcoin's growth will propel the company to $1 trillion.

“This is the most valuable asset in the world. The endgame is to be the leading Bitcoin bank,” Saylor stated during the interview.

As opposed to traditional lending, where money is borrowed from individuals at a slightly higher rate and then used to purchase Bitcoin, MicroStrategy does not engage in such practices. According to Saylor, Bitcoin investments yield an annual return of 29%, outperforming and outpacing lending.

Since 2020, MicroStrategy has been aggressively acquiring Bitcoin, raising cash primarily through debt and equity to finance these purchases.

Last month, the company purchased 7,420 BTC, bringing their total holdings to 252,220 BTC by the month's end. Out of Bitcoin's maximum supply of 21 million, MicroStrategy now holds 1.2%, at an average cost of $9.9 billion, with $3 billion in debt.

Highlighting the scalability of MicroStrategy's debt strategy, Saylor stated that the company could easily raise $100 billion or more to continue acquiring Bitcoin.

Saylor maintains that Bitcoin is the best performing asset of the 21st century, a hedge against inflation and a superior store of value. By 2045, he projects Bitcoin will comprise 7% of global financial capital, leading to one Bitcoin being valued at $13 million. When asked about the risks, Saylor stated, “You either believe Bitcoin is something, or you believe it's nothing.”

Due to its unique model of bridging USD capital markets and Bitcoin markets, MicroStrategy is able to issue convertible notes and equity instruments that provide investors with exposure to Bitcoin's volatility while also offering downside protection.

Saylor also believes that more companies should hold Bitcoin as a treasury reserve asset, stating that many firms are mismanaging their balance sheets. He adds, “They are destroying as much shareholder value with their balance sheets as they are creating with their P&L.”

He anticipates the growth of Bitcoin capital markets in the future, encompassing equity, convertibles, and fixed income from products backed by Bitcoin. As the largest corporate Bitcoin holder, MicroStrategy actively promotes adoption throughout the industry.

Other companies, such as Metaplanet, a Japanese investment firm, are following MicroStrategy's lead by steadily accumulating Bitcoin as a long-term investment strategy.

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