|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cryptocurrency News Articles
MicroStrategy Unveils Its Ultimate Project: Becoming a “Bitcoin Bank” Worth a Trillion Dollars
Oct 13, 2024 at 12:05 am
Since 2020, Michael Saylor, founder and executive chairman of MicroStrategy, has transformed his company into a Bitcoin pioneer.
MicroStrategy CEO Michael Saylor has set his sights on an audacious goal: transforming his company into a “trillion-dollar Bitcoin bank.”
During a recent presentation to Bernstein analysts, Saylor outlined his grand plan, which hinges on the belief that Bitcoin, as a deflationary asset, will reshape global financial markets.
“We are pivoting the company to become a Bitcoin bank. We believe that Bitcoin is the world's best non-sovereign store of value, and that it will appreciate substantially in value over the next ten years,” Saylor said.
To achieve this goal, MicroStrategy will continue to amass Bitcoin at a large scale, a strategy that has already seen the company acquire over 252,000 BTC.
“We are fully invested in Bitcoin. We have not made any loans. We have borrowed at low rates to put into Bitcoin, and we intend to continue doing that,” Syalor added.
The company's approach differs significantly from traditional banking institutions, which lend money at higher rates than they borrow. Instead, MicroStrategy plans to capitalize on Bitcoin's appeal as an inflation hedge, aiming for an estimated average return of 29% annually.
“We are raising long-term capital through a variety of financial instruments, including common stock, convertible securities, and bonds, all of which are being deployed into BTC holdings.”
Saylor envisions MicroStrategy's value increasing to $300-$400 billion through this strategy, thanks to Bitcoin accumulation and speculation on its future value.
“We believe that over the next ten years, Bitcoin will represent 7% of the world's financial capital. At that point, the price of Bitcoin would be $13 million, and MicroStrategy would have an asset base of $400 billion,” Saylor said.
According to the company's latest filing with the SEC, MicroStrategy had $2.4 billion in cash and cash equivalents as of March 31, 2023. The company's total assets were valued at $6.4 billion, while its total liabilities amounted to $3.1 billion.
As of March 30, 2023, MicroStrategy's outstanding Class A common stock was traded at $133.97 per share, reflecting a decrease of 7.3% from the previous year.
The company's revenue for the first quarter of 2023 reached $122.1 million, a decline of 7.2% compared to Q1 2022. However, MicroStrategy reported a net loss of $1.04 billion, primarily driven by a $903 million impairment loss on its Bitcoin holdings.
Despite the challenges posed by the bear market and an unrealized loss of over $2 billion on its Bitcoin holdings, MicroStrategy remains undeterred in its pursuit of becoming a Bitcoin capital market maker.
“We are not a bank in the traditional sense. We don't lend money out at higher rates than we borrow. But we are pivoting the company to become a Bitcoin bank,” Saylor concluded.
Disclaimer:info@kdj.com
The information provided is not trading advice. kdj.com does not assume any responsibility for any investments made based on the information provided in this article. Cryptocurrencies are highly volatile and it is highly recommended that you invest with caution after thorough research!
If you believe that the content used on this website infringes your copyright, please contact us immediately (info@kdj.com) and we will delete it promptly.
-
- How to Buy SpaceX Pre-IPO Shares
- Oct 13, 2024 at 06:10 am
- SpaceX, Elon Musk's revolutionary aerospace company, has long been a beacon of innovation, captivating investors and space enthusiasts alike. As the company continues to break barriers in space travel, satellite deployment, and space exploration, the potential for future growth is enormous.
-
- Lunex Community (LNEX) Is Set to Surge Past Avalanche (AVAX) and Replicate BNB's (BNB) ROI
- Oct 13, 2024 at 05:15 am
- As traders proceed to look out for promising cash to put money into that can provide them huge ROIs, a DeFi visionary who invested early in BNB (BNB) is now concentrating on Avalanche (AVAX) and Lunex Network (LNEX) for a excessive progress potential.
-
- The Irish Criminal Assets Bureau (CAB) Is Grappling with a €350 Million Bitcoin (BTC) Issue
- Oct 13, 2024 at 05:15 am
- The Irish Criminal Assets Bureau (CAB) is grappling with a significant issue involving approximately €350 million, or around $383 million, in Bitcoin (BTC) that has been seized from a former drug dealer.
-
- Michael Saylor Unveils His Final Project: Turning MicroStrategy Into a “Bitcoin Bank” Worth a Trillion Dollars
- Oct 13, 2024 at 05:15 am
- Since 2020, Michael Saylor, founder and executive chairman of MicroStrategy, has transformed his company into a Bitcoin pioneer, accumulating more than 252,000 BTC. Now, he sees an even greater opportunity.
-
- Billionaires Are Buying This Cryptocurrency That Could Soar 2,276%, According to Cathie Wood
- Oct 13, 2024 at 05:15 am
- The crypto market is getting ready to soar, in accordance with many well-known traders. For instance, ARK Make investments founder Cathie Wooden sees a bull-case worth level of $1.5 million per Bitcoin (CRYPTO: BTC) in 2030.