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Reading: Is Bitcoin Bank Coming? MicroStrategy’s $15 Billion Bet and Grand Vision!
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EdaFace Newsfeed > Latest News > Bitcoin and BTC > Is Bitcoin Bank Coming? MicroStrategy’s $15 Billion Bet and Grand Vision!
Bitcoin and BTC

Is Bitcoin Bank Coming? MicroStrategy’s $15 Billion Bet and Grand Vision!

vitalclick
Last updated: October 11, 2024 4:45 pm
4 months ago
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Founder and chairman of MicroStrategy Michael Saylorsaid in a recent interview with analysts at investment and brokerage firm Bernstein that the company’s ultimate goal is to become a leading Bitcoin $60,844 He announced that he wanted to become a bank. The company has maximized returns using debt and equity by purchasing Bitcoin regularly since 2020. Finally, with the purchase of 7 thousand 420 BTC announced last month, the total amount of Bitcoin in the company’s possession reached 252 thousand 220 BTC, which corresponds to an investment of approximately 15 billion dollars.

Saylor’s Bitcoin ThesisBitcoin Banking Model

Saylor’s Bitcoin Thesis

Saylor, BitcoinHe considers to be the best performing asset of the 21st century. Seeing the largest cryptocurrency as a revolutionary digital capital, Saylor stated that it provides a strong protection against inflation and offers a superior option as a long-term store of value. Stating that Bitcoin’s volatility attracts investors looking for high returns, Saylor believes that it will become indispensable for both corporate and individual portfolios over time.

Under Saylor’s leadership MicroStrategyclearly demonstrates his belief in the future of Bitcoin. What will happen if Saylor’s predictions come true and MicroStrategy becomes a large company with hundreds of billions of dollars worth of BTC? Saylor states that MicroStrategy aims to be a Bitcoin bank that creates Bitcoin capital market instruments.

Bitcoin Banking Model

MicroStrategy’s strategy is Bitcoin’s best deflationary It is based on a long-term belief that it is a currency. Currently, Bitcoin accounts for 0.1 percent of global financial capital, and Saylor predicts this rate will rise to 7 percent and the value of one Bitcoin will reach $13 million by 2045.

The company says it will continue to grow if U.S. capital markets allow it to raise funds through debt and other instruments, and the U.S. dollar is one of the largest markets in capital markets. cryptocurrency He states that he will carry out an arbitrage between Saylor predicts that Bitcoin will have an annual growth rate of 29 percent.

When asked how scalable MicroStrategy’s Bitcoin borrowing strategy is, Saylor said, “I think it can scale infinitely.” “I don’t see any problem with raising an extra $100 billion, then another $200 billion. “This is a trillion-dollar asset class, then it will grow to $10 trillion and then to $100 trillion.” he added.

Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.

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