MicroStrategy has long-term plans to become a Bitcoin bank
In a recent note from Bernstein, head of digital assets Gautam Chhugani noted that MicroStrategy is aiming to evolve into a Bitcoin bank. This is based on an interview with founder Michael Saylor, who continues to emphasize that Bitcoin is the most superior asset of the 21st century.
Since 2020, the company has pursued the course of using Bitcoin as its primary financial reserve and has accumulated 252,220 BTC to date. Saylor’s vision and MicroStrategy’s strategy have since inspired many other companies.
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Financing Bitcoin purchases through debt securities
Explained in an interview Michael Saylorthat the company aims to become a kind of Bitcoin bank or financial institution. Unlike traditional banks, MicroStrategy will not lend, but will raise capital from individuals and companies to continue purchasing Bitcoin.
In return, these investors would receive bonds, stocks and other financial instruments with low but stable returns. Saylor estimates that the company could acquire up to $150 billion worth of Bitcoin using this strategy.
Bitcoin growth instead of lending
Michael Saylor emphasized that the company would focus on borrowing Bitcoin rather than lending to individuals or companies. He argued that Bitcoin offers a higher return than other asset classes, making it more beneficial for the company to increase its holdings.
Saylor predicted that Bitcoin would offer a 22% annual return over the next decade, which explains the approach of accumulating Bitcoin rather than depleting it through lending.
