Michael Saylor Predicts Bitcoin Maturity as Institutions Prepare Allocations
Michael Saylor on Bitcoin's Stability and Future Prospects
- Michael Saylor, Strategy Executive Chairman, views Bitcoin's recent price stability as a strength, indicating market consolidation.
- He notes that long-term holders are selling portions for real-world needs, similar to employees cashing in stock options.
- Saylor emphasizes that Bitcoin's lack of cash flows doesn't make it inferior, comparing it to assets like land or gold.
Bitcoin as Collateral in Credit Markets
- Strategy aims to use Bitcoin as collateral in credit markets, offering higher yields and lower risks than conventional bonds.
- The firm offers products with yields up to 12%, heavily over-collateralized with Bitcoin.
- This approach seeks to give Bitcoin cash flow-like qualities, enhancing institutional adoption.
Inclusion in the S&P 500
- Strategy has not yet been included in the S&P 500 but became eligible this year due to accounting rule changes.
- Saylor anticipates eventual inclusion as the market adapts to the Bitcoin treasury model by late 2024.
Future Outlook
- Saylor compares the rise of Bitcoin treasury companies to the early petrochemical industry, predicting transformative growth.
- He forecasts Bitcoin appreciating at an average rate of 29% annually over the next two decades.
- Saylor believes Bitcoin could foster global peace, equity, and fairness as it gains wider acceptance.