MicroStrategy’s Ultimate Goal is to Become a Leading Bitcoin Bank: Michael Saylor

American business intelligence company MicroStrategy is on the path to becoming a leading Bitcoin bank. The firm’s co-founder, Michael Saylor, publicly shared this in an interview with analysts from the brokerage firm Bernstein. Saylor’s convictions about BTC’s status as the best-performing digital asset of the 21st century come amid MicroStrategy’s long-term bet on the leading cryptocurrency.

MicroStrategy’s Bitcoin Approach

Since 2020, MicroStrategy has consistently invested in BTC, making it the largest corporate holder of the cryptocurrency. The company began buying bitcoin as a way to preserve its treasury against inflation, but its focus is to accumulate as much BTC as possible. Saylor believes that bitcoin will eventually become the world’s dominant financial asset, replacing traditional currencies and assets like gold.

The company’s recent purchase of 7,420 Bitcoin last month increased its total BTC stash to 252,220 Bitcoin, now worth over $15 billion. This now accounts for 1.27% of Bitcoin’s total supply.

The firm’s co-founder believes that Bitcoin is the best-performing asset today. Because of Bitcoin’s price variability, it appeals to investors looking for higher returns and is also a key asset for institutions and retail investors.

“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 of some kind of debt instrument and structures instrument, we’ll have $100-$150bn of bitcoin,” Saylor said.

An Unconventional Bitcoin Bank

MicroStrategy’s executive chairman thinks outside the box with his latest idea of a Bitcoin bank. He explained to the Bernstein analysts that his company would focus on borrowing funds to buy BTC instead of giving loans. In his words, lending to individuals, companies, or governments is riskier than investing in Bitcoin, clarifying that the company does not plan to lend out its BTC holdings now.

This thesis goes beyond the conventional banking system, where lending is prioritized due to the interest attached to the loan.

Saylor calls on more companies to embrace Bitcoin as a reserve asset. Today, firms like Metaplanet, Marathon Digital, Semler Scientific, and others have taken this bold step.