Michael Saylor, the executive chairman of MicroStrategy, is urging major corporations to consider adopting Bitcoin as a key component of their treasury management strategy. He believes that investing in Bitcoin instead of stock buybacks could lead to significant gains and protect reserves from inflation.
Saylor used Apple as an example, suggesting that the tech giant could invest $100 billion in Bitcoin instead of buying back its stock. He believes this move could potentially add $1 trillion to $2 trillion to Apple’s market capitalization over time. According to Saylor, if Apple were to buy $100 billion of Bitcoin, it could grow to $500 billion, resulting in a $500 billion business growing at 20% a year.
The MicroStrategy executive chairman is a firm believer in Bitcoin’s long-term value, stating that it is the future of capital markets and a better store of value than traditional cash reserves. He predicts that Bitcoin has the potential to reach $13 million per coin within the next 21 years, emphasizing the importance of companies taking advantage of the “capital revolution” that Bitcoin brings.
MicroStrategy has already implemented this strategy, owning 252,220 BTC worth over $16 billion, making it the largest corporate whale in the industry. The company has been issuing Bitcoin-backed securities to fund its accumulation strategy, generating a “BTC yield” that has led to an 18% increase in Bitcoin per share for its investors this year.
Saylor’s BTC yield strategy involves issuing equity and convertible bonds at a premium and using the proceeds to buy more Bitcoin. This approach creates consistent growth in the company’s Bitcoin holdings while providing shareholders with returns that surpass traditional investment models. Saylor believes that companies like Apple could benefit from adopting this approach, opening new avenues for growth and mitigating inflation risks.
Overall, Saylor’s advocacy for corporations to adopt Bitcoin for their treasury strategy reflects his belief in the long-term value and potential of the cryptocurrency. By leveraging Bitcoin as a store of value and investment asset, companies could potentially see significant gains over time, as demonstrated by MicroStrategy’s successful implementation of this strategy.
