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Bitcoin And A Trillion: A Bold Plan Is Taking Shape

Sat 12 Oct 2024 ▪ 4 min read ▪ by Evans S.
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Since 2020, Michael Saylor, founder and executive chairman of MicroStrategy, has transformed his company into a Bitcoin pioneer, accumulating more than 252,000 BTC. Now, he sees an even bigger opportunity. During a recent presentation to Bernstein analysts, Saylor unveiled his ultimate project: turning MicroStrategy into a “Bitcoin bank” worth a trillion dollars. His strategy is based on a bold conviction: Bitcoin, as a deflationary asset, will redefine global financial markets.

Bitcoin plan

From BTC accumulation to Bitcoin bank

MicroStrategy’s approach relies on massive accumulation of Bitcoin. Over the years, the company has used borrowings and equity to finance its purchases.

This strategy has allowed MicroStrategy to amass an impressive amount of Bitcoin, representing about 1.2% of the global supply today.

But Saylor doesn’t stop there: he considers this accumulation as a first step. For him, BTC’s growth potential is immense, and he envisions exponential price progression, up to several million dollars per BTC.

The concept of a Bitcoin bank that Saylor projects is not a traditional bank. Unlike institutions that lend money, MicroStrategy plans to borrow at low rates to invest these funds in BTC.

The idea is simple: capitalize on Bitcoin’s appeal, perceived as a hedge against inflation, to generate estimated average returns of 29% per year. By increasing its holdings through this method, MicroStrategy aims not only to maximize its profits but also to establish itself as a key player in the BTC capital market.

This “Bitcoin bank” model is gaining momentum. Saylor plans to use various financial instruments, such as stocks, convertible securities, and bonds, to raise long-term funds and convert them into BTC holdings.

According to him, this approach could create a company valued between 300 and 400 billion dollars, thanks to Bitcoin accumulation and speculation on its future value.

A bold vision

For Michael Saylor, Bitcoin represents much more than a mere asset. He describes it as the best-performing asset of this century and believes it will transform the global financial system.

Indeed, Saylor predicts that Bitcoin could represent 7% of the world’s financial capital by 2045, which would mean a price of 13 million dollars per BTC.

Such a valuation would propel MicroStrategy to new heights, allowing it to become one of the largest Bitcoin holders in the world and establish itself as a leading institution in the sector.

Saylor considers the traditional banking model as outdated compared to the opportunities of Bitcoin. In his view, current financial institutions are limited by restrictive lending models and assets whose value is vulnerable to inflation.

In contrast, MicroStrategy is positioning itself to exploit the digital scarcity and deflationary nature of Bitcoin. According to him, this approach is not only profitable but also infinitely scalable. For MicroStrategy, each drop in BTC price represents a buying opportunity, and each rise strengthens the value of its assets.

In this perspective, the risk, although substantial, is clear: everything depends on the future value of Bitcoin. Indeed, Saylor is convinced that if Bitcoin continues to grow, MicroStrategy will have an unparalleled financial reserve.

The company could then afford to raise tens or even hundreds of billions of dollars while continuing to accumulate BTC. This ambitious strategy could well redefine the role of companies in the cryptocurrency world and pave the way for new financial models. Discover also these two giants rushing into Bitcoin.

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Evans S. avatar
Evans S.

Fasciné par le bitcoin depuis 2017, Evariste n'a cessé de se documenter sur le sujet. Si son premier intérêt s'est porté sur le trading, il essaie désormais activement d’appréhender toutes les avancées centrées sur les cryptomonnaies. En tant que rédacteur, il aspire à fournir en permanence un travail de haute qualité qui reflète l'état du secteur dans son ensemble.

DISCLAIMER

The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.