Bitcoin
Bitcoin
has boomed this week as analysts warn that ‘something has to be done’.

Unlock over $3,000 in benefits including unparalleled access to a community of top Web3 entrepreneurs, makers and investors, giving you premier networking, priority access to global events, free access to Forbes.com and our Forbes CryptoAsset & Blockchain Advisor Newsletter. Apply now!

Bitcoin prices have bounced back above $60,000 per bitcoin after crashing at the start of the week, with JPMorgan analysts quietly predicting that a so-called “debasement trade” could trigger a bitcoin price surge ahead of the US election.

Now, after the mystery of bitcoin’s creator Satoshi Nakamoto took a surprising turn, Michael Saylor, founder and executive chairman of MicroStrategy, has revealed that the company’s endgame is to become a bitcoin investment bank – and to Buy $150 billion worth of Bitcoin.

Register now for free CryptoCodex—A daily five-minute newsletter for traders, investors and the crypto-curious that will keep you informed and ahead of the bull run of the bitcoin and crypto market

ForbesDonald Trump’s ‘pivotal’ China nightmare is suddenly becoming a realityBy means of Billy Bambrough

“(Bitcoin) is the most valuable asset in the world,” Saylor, who started buying bitcoin from the software-turned-bitcoin acquisition vehicle in 2020, told Bernstein analysts in an interview revealed by Gautam Chhugani, head of digital assets from Bernstein in a note to customers seen by The Block.

“The end game is to be the leading bitcoin bank or merchant bank, or you could call it a bitcoin finance company,” Saylor said, with MicroStrategy creating bitcoin capital market vehicles for equities, convertibles, fixed income and preferred stock.

“If we end up with $20 billion in converts, $20 billion in preferred stock, $10 billion in debt and, say, $50 billion billion in some sort of debt instrument and structure instrument, then we have $100 billion to $150 billion in bitcoin.”

Saylor has built a hoard of just over 252,000 bitcoin worth $15.7 billion at MicroStrategy by issuing debt to finance bitcoin purchases — a strategy that could mean MicroStrategy gets a margin call on demand to additional capital if the bitcoin price falls below a certain level. level, but a level that Saylor wants to continue.

“I think it’s infinitely scalable,” Saylor responded. “I have no problem seeing how we can raise $100 billion in additional capital and then $200 billion after that. It’s a trillion dollar asset class that goes to $10 trillion and then goes to $100 trillion. The risk is very simple: it’s bitcoin. You either believe Bitcoin is something, or you believe it is nothing.”

While other companies that have dabbled in bitcoin — such as Elon Musk’s Tesla or Wall Street giant BlackRock — have used their profits to fund their businesses or try to extract fees from customers, Saylor’s strategy is simpler.

Register now for CryptoCodex—A free, daily newsletter for the crypto-curious

ForbesTesla Billionaire Elon Musk Issues $35 Trillion US ‘Bankruptcy’ Warning – Expected to Cause Bitcoin Price SurgeBy means of Billy Bambrough

“We’re just going to keep buying more bitcoin,” Saylor said. “Bitcoin is going to make millions per coin, you know, and then we’ll create a trillion-dollar business,” he said, predicting that the price of bitcoin will reach $13 million by 2045 as it goes from 0.1% of global financial capital to 7% goes. .

MicroStrategy stock has skyrocketed along with the bitcoin price over the past year, surpassing bitcoin, as the company’s stock attracts buyers who want exposure to bitcoin but don’t want to pay the fees associated with the new spot bitcoin exchange-traded funds (ETFs) that debuted earlier this year.

The bitcoin price is up 50% since January, while shares of MicroStrategy are up just over 200%.

“On a relative basis to bitcoin, (MicroStrategy) stock is at its highest level since 2019,” Wolfe Research director Rob Ginsberg wrote in a note to clients seen by CNBCwarns the stock is overbought and recommends “tactically hedging” MicroStrategy’s gains by buying Bitcoin outright.