🌋 MicroStrategy’s Next Move: Bitcoin Bank?
posted 11 Oct 2024
In an interview with Bernstein analysts, Michael Saylor made it clear that MicroStrategy’s long-term goal is to become a major Bitcoin bank. He also predicted that the company could one day be valued in the trillions.
The company’s most recent Bitcoin purchase took place in September 2024, when it acquired 7,420 BTC, bringing its total holdings to 252,220. By October 2024, these assets were valued at roughly $15 billion.
Building a Bitcoin Bank
Saylor’s goal is to borrow money at low interest rates, offer slightly higher rates to lenders, and invest those funds into BTC, expecting an annual return of 29%.
He claims that lending to individuals, companies, and governments (through traditional financial systems) is riskier than lending through Bitcoin investments.
Explore more: Michael Saylor: The Maverick Billionaire and Bitcoin Enthusiast
MicroStrategy is currently the largest corporate holder of Bitcoin, having pursued an aggressive buying strategy since 2020, using both debt and equity financing to build its portfolio.
The company’s most recent Bitcoin purchase took place in September 2024, when it acquired 7,420 BTC, bringing its total holdings to 252,220. By October 2024, these assets were valued at roughly $15 billion.
MicroStrategy's Bitcoin holdings. Source: treasuries.bitbo.io
Michael Saylor insists that Bitcoin is the most effective asset of this century. He sees it as a revolutionary digital asset, a hedge against inflation, and a means of preserving value in the long run.
Building a Bitcoin Bank
Saylor’s goal is to borrow money at low interest rates, offer slightly higher rates to lenders, and invest those funds into BTC, expecting an annual return of 29%.
He claims that lending to individuals, companies, and governments (through traditional financial systems) is riskier than lending through Bitcoin investments.
Explore more: Michael Saylor: The Maverick Billionaire and Bitcoin Enthusiast
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