Strategy Executive Chairman and Founder Michael Saylor remains convinced that Bitcoin is mathematically unstoppable.
The famously bullish executive predicted massive institutional absorption of the asset.
“Oh, absolutely,” Saylor stated when asked if a $1 million price target on Bitcoin was just a matter of time by one of the hosts. “Bitcoin’s gone up forever.”
Buying the supply until 2140
Saylor believes institutional demand will perpetually outstrip the dwindling newly mined supply.
“The formation of digital credit means that the credit market itself is absorbing all of the organic supply of Bitcoin from now to forever,” Saylor explained. “Our company will probably buy all of the Bitcoin that gets produced by the miners between here and the year 2140. Then there’s no more Bitcoin.”
Financial engineering and “digital credit”
Strategy has pivoted heavily into what Saylor calls “digital credit.” Structured products are designed to offer high-yield dividends to risk-averse investors while reserving the volatile upside for common stockholders.
“Wall Street firms have been creating structured products forever. They take a big stack of S&P securities and they strip the downside,” Saylor noted. “What we’ve done is taken a capital asset, Bitcoin, and we’re converting those capital gains into credit dividends. We think Bitcoin’s going up more than the S&P index over time; we expect 30%. But it doesn’t matter if it’s 10% or 20%. We can pay an 11.5% dividend on a preferred stock.”
Strategy aims to create a highly liquid, low-volatility credit instrument.
“What we’re doing is financial engineering where we strip the upside and the volatility, and give it to the common equity investors. That’s a rocket,” Saylor said. “Bitcoin is a fighter jet. Strategy is a passenger jet for people that want a very comfortable ride.”
Regulatory tailwinds
Saylor acknowledged that the market is currently working against a few macro headwinds, but he expects significant regulatory catalysts to shift the momentum.
“The real power of tokenization is it creates a free market in credit formation and yield for asset owners,” he argued. “In the 20th-century TradFi economy, your bank decides you just won’t get credit, you just won’t get yield, and there’s not a single thing you can do about it. Tokenization is a free market in capital. It creates a higher velocity and a higher productivity for capital assets.”
He also swiftly dismissed the existential threat that quantum computing could one day break Bitcoin’s cryptography.
“When [a] threat exists, then we will upgrade the entire network in a matter of months,” Saylor countered. “And it’ll happen as fast as your Apple software and Google software.”
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