New “Bitcoin Bank” Name Came from Michael Saylor, Who Has 16 Billion Dollars of BTC! Here are the Details

MicroStrategy’s long-term vision is a Bitcoin (BTC) to become a financial centre.

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 BTC lending.

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, according to Bernstein. The company’s strategy has been to issue debt and use the proceeds to purchase BTC, driven by the belief that the value of Bitcoin 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, which would be a significant increase from the current rate of 0.1%. He suggested that at this level, Bitcoin’s price could reach $13 million per coin.

“BTC wants to borrow your money,” Saylor said at the customer event. “Lend your capital to Bitcoin and get a return in Bitcoin,” he said. He said borrowing from the fixed income market to invest in Bitcoin provides better returns than traditional lending.

“Lending to individuals, companies, and governments is riskier than lending to BTC,” he added. However, MicroStrategy does not currently plan to lend Bitcoin assets. Instead, Saylor proposed borrowing $10 billion from BTC holders, offering them up to 1% higher returns, and then using that capital to “lend Bitcoin” at up to 50% interest with minimal counterparty risk.

Founded in 1989 as a software company, MicroStrategy started buying Bitcoin in 2021 and has since started to play an important role 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 is gaining legitimacy as traditional financial firms invest and regulators provide support. “You are watching the birth of a new asset class,” he said. He explained that Bitcoin’s journey has gone from idealism, through volatile “crazy years,” to its current stage of corporate and institutional adoption.

“For the first time in 100 years, we have a new asset class and a new way of thinking about money and capital adopted by regulators,” said Saylor, referring to the approval of Bitcoin spot ETFs in the US and Wall Street’s ability to store Bitcoin.

According to Saylor, the increasing acceptance of BTC by US presidential candidates is another positive indicator as it indicates mainstream political support. Saylor believes this momentum signals the beginning of a “digital gold rush.”

Saylor predicts that starting in 2025, investors will have a decade to acquire Bitcoin before it becomes rare on the open market. Saylor estimates that 99% of BTC will have been mined and sold by 2035. “By January 1, 2035, only 1% of BTC will have flowed out for 106 years. “This is less than what MicroStrategy currently has,” he said.

*This is not investment advice.