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Michael Saylor, the founder of Strategy, predicts that Bitcoin could reach a value of $13 million per coin by 2045. In a discussion with Natalie Brunell, Saylor expressed his belief that Bitcoin will become the leading reserve asset for corporate treasuries, surpassing traditional commodities like gold, cash, and bonds.
He argued that corporations can achieve substantial returns over time by maintaining fixed-rate debt and using their profits to purchase Bitcoin.
Saylor feels low-profile publicly traded firms are turning to Bitcoin to boost their digital balance sheet and cement their positions with investors. As a recent follower of MicroStrategy’s approach, Saylor highlighted looking at Meta Planet, a Japanese company. Saylor said firms are shifting to Bitcoin because the S&P 500 is outpacing outdated financial products such as stock repurchasing and cash hoarding.
In addition to Bitcoin purchases, Strategy is releasing a broad array of financial products to increase access to the cryptocurrency. As a perpetual preferred stock, Strife provides investors with a guaranteed 10% interest rate backed by Bitcoin collateral, ideal for steady income seekers. There is also ‘Strike,’ which provides 8% income with intended exposure to Bitcoin's upside, perfect for risk-averse investors.
Saylor introduced BitBonds as a form of bond underwritten by Bitcoin that he believes has potential appeal to companies and nations willing to diversify their methods of raising finances. Strategy says BitBonds' wide use would depend on clear regulations and the availability of leaders willing to use these instruments.
While Bitcoin continues to be valued at approximately $103,000, Saylor attributed the valuation level to profit selling, which was still occurring at failed firms such as FTX and still took a toll on the market's growth. He observed that corporate and ETF purchases by institutional investors are slowly building the groundwork for long-term demand for cryptocurrency.
Saylor advised individual investors to focus on building up their Bitcoin instead of trying to time the market. He proposed staying employed, using cheap debt, and buying the asset slowly. According to Saylor, Bitcoin's value proposition is not waning, although there is market volatility. He attributed it to the Bitcoin rally from $4,000 in 2020, which has been shown to beat tech stocks and conventional commodities as the outperforming asset class.
