DeutschStrategy founder Michael Saylor reveals details about his long-term Bitcoin investment strategy for the first time. The software developer is ultimately expected to hold BTC worth one trillion US dollars. The cryptocurrency would then serve as loan collateral. Globally, they aim to issue profitable digital loans and outperform Bitcoin’s price development.
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Michael Saylor: how much Strategy is Investing in BTC Long-Term
In 2020, Michael Saylor devised the Bitcoin investment strategy for his company MicroStrategy. Since then, the US company has invested 74.43 billion US dollars in the largest cryptocurrency.
With holdings of 640,031 Bitcoin, the now-renamed company – now under the name Strategy – is the largest publicly traded BTC investor on Earth. While Strategy is not the first company to employ a radical crypto acquisition strategy, the company is now considered the prime example of this concept.
Strategy’s stock has already seen enormous price gains thanks to Bitcoin. Alongside the struggling core business of software development, a new business segment was opened.
Many companies have adopted this concept as a model – such as GameStop, Metaplanet, or Rumble. Occasionally, companies publicly announce their entry. Most recently, Jiuzi and OranjeBTC announced the start of their investment.
Increasingly, institutional investors aim to unseat Strategy from its throne – most recently, Strive articulated this intention. According to an interview with Bitcoin Magazine, Michael Saylor has now set a concrete goal. For the first time, he revealed details about his long-term plan.
“The ultimate goal is to accumulate one trillion US dollars worth of Bitcoin. Then we’ll let it grow 20 to 30% per year,” Saylor explains.
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The Bitcoin price increases by 21% per year, the American states. Strategy’s goal is to deliberately surpass these annual gains.
Why Strategy Wants to Issue Bitcoin Loans
In conversation with George Mekhail, Saylor explains that he wants to use Bitcoin loans to increase the company’s assets by more than 21% annually – and thus grow faster than Bitcoin. BTC is intended to serve as overcollateralization for loans in the future.
With Bitcoin assets worth one trillion US dollars, a return of 30% could be realized annually, says the Strategy founder. This is to be achieved through the issuance of Bitcoin loans. The cryptocurrency serves as collateral – i.e., as loan security.
“Each year, we would issue loans worth 100 billion US dollars to grow 20 to 30% per year. These loans generate 200 to 400 basis points more than (…) otherwise collateralized bonds.”
The entrepreneur expects that the lending business will then become self-sustaining and become blockbusters, especially in countries where there are currently significant hurdles and poor conditions – Saylor names Switzerland as an example.
“This is how bond markets can be revived. (…) Perhaps the risk-free interest rate will rise this way and monetary repressions will decrease,” the 60-year-old confidently explains.
The concept is capable of improving traditional credit markets and generating higher profits for lenders. At the center should be a network of Bitcoin treasury companies.
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