Michael Saylor said in an interview with representatives of the analytical firm Bernstein that since August 2020, MicroStrategy has been actively increasing its bitcoin reserves. The latest purchase of 7,420 BTC, announced in September, brings the company’s total reserves to 252,220 BTC.
Current estimates place the value of Bitcoin under MicroStrategy’s management at around $15.5 billion, making it the largest corporate holder of the first cryptocurrency in the world. The company’s total costs for the purchase of cryptocurrency exceed $9.9 billion.
Saylor is convinced that Bitcoin is the most valuable asset in the world and can become the basis for MicroStrategy’s transformation into a financial company or a Bitcoin bank. MicroStrategy plans to develop instruments for the Bitcoin capital markets, including its own shares, convertible bonds and other securities.
“It is the most valuable asset in the world. The ultimate goal is to become a leading Bitcoin bank, or a merchant bank, or you could call it a Bitcoin finance company. If we end up with $20 billion of convertibles and $20 billion of preferred stock, $10 billion of debt and, say, $50 billion of some debt and structured instrument, we would have a total of $100-$150 billion in Bitcoin,” Saylor said.
The founder of MicroStrategy does not exclude the possibility of further raising debt financing for the purchase of bitcoins. Given the projected average annual return of the cryptocurrency at 29%, this strategy will allow the company to continue to successfully operate in the Bitcoin capital market.
According to data presented by Saylor in September, over the four years of implementing the Bitcoin accumulation strategy, MicroStrategy’s capitalization almost tripled. Earlier, the chairman of the company suggested that American banks issue dollar loans secured by Bitcoin.
Source: Bits

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