Key Takeaways
- MicroStrategy’s stock price soared as much as 10% after the company revealed its plans to become a Bitcoin bank.
- Saylor envisions MicroStrategy as a leading Bitcoin bank that will leverage Bitcoin’s growth to dominate the market.
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Shares of MicroStrategy (MSTR) hit a Friday morning high of $205, up more than 10% in the past 24 hours, boosted by the company’s ambitious strategy to position itself as a Bitcoin bank, according to Yahoo Finance data.
In a recent interview with Bernstein, Michael Saylor said he plans to make the company a leading Bitcoin-centric financial institution, like Merchant Bank, a Bitcoin bank that could grow into a trillion-dollar company if Bitcoin rises in value. It was revealed.
“The end game is to become the best Bitcoin bank or commercial bank,” Saylor said. Or you could call it a Bitcoin finance company.”
According to Saylor, MicroStrategy plans to borrow funds through various capital markets instruments and use those funds to invest in Bitcoin. He expects an average annual return of approximately 29% from this investment strategy.
Saylor’s prediction is that Bitcoin’s value will skyrocket to millions of dollars per coin in the coming years, valuing MicroStrategy at $300 billion to $400 billion, and potentially reaching $1 trillion.
“If we had $20 billion in convertibles, $20 billion in preferred stock, $10 billion in debt, $50 billion in debt instruments and structured notes, we would have $100 to $150 billion worth of Bitcoin. It will be,” Saylor estimated.
“The company trades at a 50% premium with higher volatility and ARR. We can build a company with a 100% premium to Bitcoin worth $150 billion, a $300 to $400 billion company with the largest options market, the largest assets. “The market,” he said.
“Then we basically start chewing up the fixed income market and continue to buy more Bitcoin. “Bitcoin will be worth millions of dollars per coin, and we will create a trillion-dollar company.”
Unlike traditional banks, MicroStrategy’s visionary Bitcoin bank does not lend Bitcoin. The bank’s goal is to create a comprehensive suite of Bitcoin-based financial products covering stocks, bonds and other investment vehicles.
Under Saylor’s leadership, MicroStrategy has been actively acquiring Bitcoin over the past four years. Companies use a variety of methods to finance their Bitcoin purchases, including leveraging debt and equity.
MicroStrategy’s recent acquisition of 7,420 BTC of Bitcoin brought its total holdings to 252,220 BTC, worth approximately $15 billion. MicroStrategy is currently the world’s largest corporate holder of the flagship cryptocurrency, according to data from Bitcoin Treasuries.
The company’s Bitcoin playbook has become a source of inspiration for other companies such as Metaplanet. The Japanese investment firm announced its Bitcoin adoption earlier this year and has amassed around 748 BTC so far.
Bitcoin acquisitions drove MicroStrategy’s stock performance. MicroStrategy’s stock price has soared more than 1,200% over the past four years. MicroStrategy’s stock is expected to maintain a close relationship with Bitcoin as it continues to gain traction and value. Bitcoin performance, potentially leading to new It will hit a new high in the near future.
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