In a remarkable interview with Bitcoin Magazine, Michael Saylor detailed the ultimate goal of his company, MicroStrategy (and Bitcoin treasury companies in general), and the Bitcoin-centric future of the global financial system.
Saylor stated that the main goal of their strategy is to accumulate one trillion dollars worth of BTC and aims to grow by issuing loans on this capital.
Michael Saylor argued that this strategy is simple yet transformative. Saylor summarized their ultimate goal: “The ultimate goal is to accumulate a trillion dollars worth of Bitcoin and then grow that capital by issuing more credit.”
Saylor describes Bitcoin as “digital energy” and the monetary foundation of the 21st century. He argues that, like fire, the wheel, or oil, Bitcoin is the next technological paradigm shift that will improve the human condition. According to Saylor, BTC Treasury companies leverage this capital by issuing new digital credit instruments (bonds, preferred stocks) using Bitcoin as digital gold.
Saylor states that these companies' primary competition isn't with each other, but with the legacy 20th-century credit and equity markets. He claims that this new form of digital credit is more transparent, more reliable, and offers higher returns. Saylor predicts that these new financial products will replace traditional, lower-yielding instruments.
In Saylor's vision, this strategy presents the greatest opportunity in the current financially stressed large capital markets. Bitcoin-backed loans could offer significantly higher returns, say up to 10%, and thus restore the health of traditional banking and deposit markets, particularly in markets like Switzerland or Japan where risk-free interest rates are close to zero.
Saylor noted that institutional adoption is rapidly increasing, noting that the institutional Bitcoin treasury trend that began in 2020 has now reached more than 180 publicly traded companies. He explained that institutions are the “engines that keep the Bitcoin economy running,” enriching individual investors with every capital injection they make into the network.
Later in the interview, Saylor reiterated his long-term optimism for Bitcoin, claiming it offers a risk-free return as an investment. “I expect Bitcoin to appreciate at an average of 29% per year for the next 21 years,” Saylor said, sharing his prediction that the price of BTC will reach $21 million in 21 years.
Saylor stated that Bitcoin will be the foundation of the 21st century's digital credit, digital equity, digital banking, and digital economy, arguing that Bitcoin treasury companies will be the main engines of this major transformation.
*This is not investment advice.