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Michael Saylor has an ambition plan to turn MicroStrategy MSTR into the top Bitcoin BTC/USD bank.

What Happened: Saylor recently called MicroStrategy a "merchant bank.”

Or, “you could call it a Bitcoin finance company,” he told Bernstein analysts, according to The Block.

MicroStrategy recently acquired 7,420 BTC, increasing its holdings to 252,220 BTC (worth $15 billion). This makes the company the largest corporate Bitcoin holder globally.

Saylor, who started MicroStrategy in 1989, sees Bitcoin as a potent hedge against inflation and an exceptional tool for long-term value preservation. He anticipates that Bitcoin’s volatility will draw investors seeking high returns and will become indispensable for institutional and retail portfolios over time.

"If we end up with $20 billion of converts, $20 billion of preferred stock, $10 billion of debt and say $50 billion of some kind of debt instrument and structures instrument, we’ll have $100-$150 billion of Bitcoin,” Saylor said.

Why It Matters: Saylor projects that by 2045, Bitcoin will constitute 7% of global financial capital. This suggests a $13 million price per Bitcoin.

The company's unique approach to Bitcoin banking involves borrowing rather than lending. Saylor contended that investing in the crypto king is less risky than lending to individuals, corporations, and governments. And the firm currently has no intentions to lend out its Bitcoin holdings.

CoinDesk analyst James Van Straten tweeted Bernstein's latest MicroStrategy rating as outperform with a price target of $290, marking a 37% upside from current levels.

A couple of months ago, Bernstein came out about the #Bitcoin ETFs: they are "on the cusp of approval at major wirehouses at large banks.

The basis trade is a trojan horse for adoption which leads to net long positions".

Now giving $MSTR an outperform rating at $290, another… pic.twitter.com/tHrPQW2IzL — James Van Straten (@btcjvs) October 11, 2024

What’s Next: The influence of Bitcoin as an institutional asset class is expected to be thoroughly explored at Benzinga’s upcoming Future of Digital Assets event on Nov. 19.

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