Saylor Calls Bitcoin “Digital Capital,” Says MicroStrategy Isn’t Trying to Own Entire BTC Supply

Strategy executive chairman Michael Saylor sees Bitcoin as a digital capital, which it leverages to build its business model

The Bitcoin maximalist was featured on CNBC’s Squawk Box today, where he provided insights into how the company has built a corporate finance framework around the premier asset

Strategy Business Model

According to him, Strategy’s business model revolves around issuing digital credits like preferred stocks, while using the proceeds to accumulate Bitcoin, which he referred to as “digital capital.”

Shortly after the offering, Strategy announced the purchase of 21,021 BTC for $2.46 billion on July 29. Following the purchase, the company’s Bitcoin stash grew to 628,791 BTC, currently valued at $71.91 billion. For context, Strategy’s 628,791 BTC stash is equivalent to roughly 3% of the entire 21 million Bitcoin supply

Given the remarkable gains Strategy has recorded from its Bitcoin holdings, Saylor emphasized that BTC is a 50-year duration asset. In his view, Bitcoin investors are positioned for decades of potential upside that could linger over a 50-year duration

MicroStrategy Doesn’t Want All of Bitcoin Supply

When asked whether there will ever be enough Bitcoin for MicroStrategy, Saylor said he does not believe owning up to 7% of the Bitcoin supply is outrageous. He pointed out that BlackRock currently owns more BTC via its iShares Bitcoin Trust (IBIT) ETF, holding 740,896 BTC

Nonetheless, he stressed that MicroStrategy does not intend to own all the Bitcoin in the market. According to him, the company wants other entities to have a piece of the Bitcoin pie

Meanwhile, he highlighted the growing interest in the Bitcoin treasury movement among public firms. Per Saylor, the number of public firms holding Bitcoin has skyrocketed to over 160, up from just 60 last year

Notably, he remains confident that the premier asset could deliver an average annual return (ARR) of 30% yearly over the next 20 years, which he believes will raise BTC’s price to roughly $13 million