New “Bitcoin Bank” Step Comes From Michael Saylor, Who Has $ 16 Billion BTC – Here Are The Details
The post New “Bitcoin Bank” Step Comes From Michael Saylor, Who Has $ 16 Billion BTC – Here Are The Details appeared on BitcoinEthereumNews.com.
MicroStrategy’s long-term vision is to become a Bitcoin (BTC) financial hub, according to founder Michael Saylor. During a chat hosted by Bernstein on Wednesday, Saylor outlined his ambitious plans, positioning the company as a “Bitcoin bank” or “merchant bank,” though not in the traditional sense of lending BTC. According to Bernstein, MicroStrategy, one of the world’s largest BTC holders, has amassed a $16 billion Bitcoin stash, representing about 1.3% of the world’s supply. The company’s strategy has been to issue debt and use the proceeds to purchase BTC, believing that Bitcoin’s value will increase over time as inflation reduces the purchasing power of fiat currencies. Saylor predicted that by 2045, Bitcoin could account for 7% of the world’s financial capital, a significant increase from the current 0.1%. At that level, he suggested, Bitcoin’s price could reach $13 million per coin. “BTC wants to borrow your money. Lend your capital to Bitcoin and get back in Bitcoin,” Saylor said at a client event. He said borrowing from the fixed income market to invest in Bitcoin offers better returns than traditional lending. “Lending to individuals, companies, and governments is riskier than lending to BTC,” he added. But MicroStrategy does not currently plan to lend out Bitcoin assets. Instead, Saylor proposed borrowing $10 billion from BTC holders, offering them up to 1% higher yield, and then using that capital to “lend on Bitcoin” at up to 50% interest with minimal counterparty risk. Founded in 1989 as a software company, MicroStrategy began buying Bitcoin in 2021 and has since become a major player in the cryptocurrency market. The stock now acts as a de facto proxy for BTC, attracting investors looking to gain exposure to BTC. Saylor argued that Bitcoin has gained legitimacy as traditional financial firms invest and regulators provide support. “You’re watching…
Filed under: News - @ October 11, 2024 9:07 pm