MicroStrategy's long-term vision is to become a Bitcoin (BTC) finance hub, according to founder Michael Saylor. During a talk hosted by Bernstein on Wednesday, Saylor outlined his ambitious plan, positioning the company as a "Bitcoin bank" or "commercial bank," though not in the traditional sense of lending BTC.
According to Bernstein, MicroStrategy, one of the world's largest BTC holders, has accumulated $16 billion in Bitcoin, representing about 1.3% of the world's supply. The company's strategy is to issue debt and use the proceeds to buy BTC, believing that Bitcoin's value will increase over time as inflation reduces the purchasing power of fiat currencies.
Saylor predicts that by 2045, Bitcoin could account for 7% of the world's financial capital, up from 0.1% today. At that level, he says, Bitcoin could be worth $13 million per coin.
“BTC wants to borrow your money. Lend Bitcoin and get Bitcoin back,” Saylor said at a client event. He said borrowing from the fixed income market to invest in Bitcoin offers better returns than traditional lending.
“Lending to individuals, companies, and governments is riskier than lending to BTC,” he added. But MicroStrategy has no plans to lend Bitcoin assets at this time. Instead, Saylor proposed borrowing $10 billion from BTC holders, offering them a higher yield of up to 1%, and then using that capital to “lend Bitcoin” at up to 50% interest with minimal counterparty risk.
Founded in 1989 as a software company, MicroStrategy began buying Bitcoin in 2021 and has since become a major player in the cryptocurrency market. The stock now acts as a physical representation of BTC, attracting investors who want exposure to BTC.
Saylor argued that Bitcoin gained legitimacy as traditional financial firms invested and regulators provided support. “You’re witnessing the birth of a new asset class,” he said. He explained that Bitcoin’s journey has evolved from idealism, through the tumultuous “crazy years,” to its current state of institutional and corporate adoption.
“For the first time in 100 years, we have a new asset class and a new way of thinking about money and capital that is being embraced by regulators,” Saylor said, referring to the approval of Bitcoin spot ETFs in the United States and Wall Street’s ability to store Bitcoin.
According to Saylor, the growing acceptance of BTC from US presidential candidates is another positive indicator as it shows mainstream political support. Saylor believes this momentum signals the beginning of a “digital gold rush.”
Saylor predicts that starting in 2025, investors will have a decade to buy Bitcoin before it becomes scarce on the open market. He predicts that 99% of BTC will be mined and sold by 2035. “By January 1, 2035, only 1% of BTC will have been sold over the course of 106 years. That’s less than what MicroStrategy has today,” he said.
