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Since 2020, MicroStrategy has aggressively acquired Bitcoin, using both debt and equity to boost returns and outperform traditional investments. 

Now valued at over $15 billion, these holdings cost approximately $9.9 billion, with $4 billion in debt. MicroStrategy now owns 1.2% of Bitcoin’s total supply, making it the largest corporate holder. Saylor believes Bitcoin is the best-performing asset of this century. He views it as a revolutionary form of digital wealth, a hedge against inflation, and a strong store of value. He predicts bitcoin’s volatility will continue to attract investors seeking high returns.

The last 12 months have seen spectacular returns for MicroStrategy as the Bitcoin price has risen by 116%. Source: Brave New Coin Bitcoin Liquid Index

Under Saylor’s leadership, MicroStrategy remains committed to this vision. If successful, the company could hold hundreds of billions in bitcoin. The question remains: what’s next for MicroStrategy?

Michael Saylor envisions MicroStrategy becoming a Bitcoin bank, focusing on creating Bitcoin-based financial products. These offerings would include equities, convertibles, fixed-income instruments, and preferred shares, all supported by a large reserve of bitcoin. 

“This is the most valuable asset in the world. The endgame is to be the leading bitcoin bank, or merchant bank, or you could call it a bitcoin finance company. If we end up with $20bn of converts, $20bn of preferred stock, $10bn of debt and say $50bn billion of some kind of debt instrument and structures instrument, we’ll have $100-$150bn of bitcoin, said Saylor.

The company’s plan rests on its belief that Bitcoin is the best deflationary currency. Currently, bitcoin represents just 0.1% of global financial capital. Saylor predicts this share will rise to 7% by 2045, meaning each bitcoin could be worth around $13 million. This estimate aligns with an analysis by Gautam Chhugani from Bernstein, who expects Bitcoin to grow annually by 29%.

Saylor’s strategy includes using U.S. capital markets to raise money through debt, equity, and other instruments. This would allow MicroStrategy to expand while taking advantage of price differences between U.S. dollars and bitcoin. When asked if this debt strategy could scale, Saylor expressed confidence, saying it could grow without limit. He believes they could easily raise $100 billion, then $200 billion, as Bitcoin grows from a trillion-dollar asset to one worth $100 trillion.

Saylor discussed how MicroStrategy could shape its financial structure. He said:

“I don’t have any problem seeing how we could raise $100bn more capital and then $200bn after that. It’s a trillion dollar asset class going to $10tn and then going to $100tn. The risk is very simple — it’s bitcoin. You either believe bitcoin is something, or you believe it’s nothing.”

Saylor also compared this approach to traditional banking. He argued, “It’s smarter to borrow $1 billion from the fixed income market and invest in bitcoin at 50% annual returns, without counterparty risk, than to lend money at 12%-14%.” This method reduces risk by bypassing traditional loans and focusing on Bitcoin’s potential for high gains without exposing the company to risky counterparties.

Chhugani pointed out that MicroStrategy has connected the USD and Bitcoin markets by offering investment tools. These options give investors exposure to Bitcoin’s volatility with downside protection. The model benefits from low-cost debt and favorable conversion terms, offering a competitive edge. Larger firms may struggle to copy this model due to their broader focus, which gives MicroStrategy a clear market advantage.

MicroStrategy’s lead in corporate bitcoin holdings stands out from others. According to BitcoinTreasuries, Bitcoin miner MARA ranks second, holding 26,842 BTC ($1.6 billion). Meanwhile, Japanese firm Metaplanet holds only 748.5 BTC ($45.7 million) after recently buying 109 BTC ($6.6 million). This clear gap shows MicroStrategy’s focused strategy on amassing bitcoin.

Saylor stressed the need for companies in the crypto space to adopt Bitcoin as a treasury reserve. He argued that firms like bitcoin miners, Coinbase, and Block, harm shareholder value with poor balance sheets despite profit generation. Saylor believes companies are slowly recognizing Bitcoin’s value, following MicroStrategy’s example.

“We’re gradually winning over companies, like Semler Scientific and Marathon, which have taken a new stance. I expect to see more bitcoin miners and exchanges follow suit over time,” said Slayor.

MicroStrategy’s capital strategy, integral to its long-term goals, focuses on the high returns from bitcoin investments. CEO Saylor confidently plans to borrow $10 billion from willing lenders at a slightly higher yield, investing this in Bitcoin to earn 30% to 50% interest, thus minimizing typical lending risks. 

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