Michael Saylor reveals $100 trillion MicroStrategy's shocking 'end game' as Bitcoin price suddenly skyrockets

Bitcoin
Bitcoin
has fluctuated wildly this week as analysts warn that “something has to give.”

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Bitcoin price has risen back above $60,000 per bitcoin after a crash earlier in the week, although JPMorgan analysts are quietly predicting that a so-called “devaluation trade” could trigger a bitcoin price boom ahead of the US election.

After the mystery surrounding Bitcoin creator Satoshi Nakamoto took a surprising turn, MicroStrategy founder and CEO Michael Saylor has revealed that the company's ultimate goal is to become a Bitcoin investment bank – and worth Bitcoin to buy up to $150 billion.

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“(Bitcoin) is the most valuable asset in the world,” Saylor, who began buying Bitcoin in 2020 through the software-turned-Bitcoin acquisition vehicle, told Bernstein analysts in an interview conducted by Gautam Chhugani, head of digital assets at Bernstein, in an interview, revealed notice for customers who were seen by The block.

“The end goal is to be the leading Bitcoin bank or merchant bank, or you could call it a Bitcoin finance company,” Saylor said, with MicroStrategy developing Bitcoin capital market instruments for stocks, convertibles, fixed income and preferred stocks.

“If we end up with $20 billion in conversions, $20 billion in preferred stock, $10 billion in debt and, say, $50 billion in some sort of debt and structural instruments, we will be 100.” have up to $150 billion in Bitcoin.”

Saylor has built up a holding of just over 252,000 bitcoins worth $15.7 billion at MicroStrategy by issuing debt to finance bitcoin purchases – a strategy that could mean MicroStrategy has “margin calls.” the demand for additional capital should the Bitcoin price fall below a certain level – but one that Saylor wants to continue.

“I think it’s infinitely scalable,” Saylor replied. “I have no problem imagining how we could raise $100 billion more capital and then $200 billion after that. It's a trillion-dollar asset class, rising to $10 trillion and then $100 trillion. The risk is very simple: it is Bitcoin. Either you believe Bitcoin is something or you believe it is nothing.”

While other companies that have dabbled in Bitcoin — like Elon Musk's Tesla or Wall Street giant BlackRock — have either used profits to fund their businesses or tried to extort fees from their customers, Saylor's strategy is simpler.

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“We’re just buying more and more Bitcoin,” Saylor said. “Bitcoin will cost millions per coin, you know, and then we'll create a trillion-dollar company,” he said, predicting that the Bitcoin price will reach $13 million by 2045 as it grows from 0.1% of global financial capital will rise to 7%. .

MicroStrategy stock has skyrocketed along with the price of Bitcoin over the last year, overtaking Bitcoin as the company's shares attract buyers who want Bitcoin exposure but don't want to pay the fees that come with the new spot Bitcoin exchange-traded funds (ETFs) debuted earlier this year.

Bitcoin price is up 50% since January, while MicroStrategy shares are up just over 200%.

“On a relative basis compared to Bitcoin, (MicroStrategy) stock is at its highest level since 2019,” Rob Ginsberg, managing director of Wolfe Research, wrote in a note to clients seen by CNBCwarns that the stock is overbought and recommends “tactically hedging” MicroStrategy’s profits by buying Bitcoin outright.