Michael Saylor Predicts Bitcoin Could Reach $1 Million With Strategic Purchases

In a recent podcast, Michael Saylor discussed the soaring price of Bitcoin and the implications of his firm's aggressive purchasing strategy.

Key Takeaways

Michael Saylor believes Bitcoin's price could skyrocket to $1 million with Strategy’s acquisition of 5% of BTC's total supply.
Strategy has purchased significant amounts of Bitcoin, now holding a total of 671,268 BTC.
The firm spent $50 billion to acquire around 3.2% of Bitcoin’s supply, but future investments would yield considerably less BTC due to rising prices.
Saylor noted that Bitcoin's price is rising exponentially, requiring exponentially more fiat currency for each new acquisition.
He expects institutional adoption and large inflows, particularly from firms like BlackRock, to concentrate Bitcoin ownership among early adopters.

Michael Saylor and Bitcoin

Michael Saylor, Executive Chairman of Strategy (formerly MicroStrategy), predicts that Bitcoin could reach astonishing price levels—$1 million per coin—if his firm purchases around 5% of the total Bitcoin supply. He elaborated on this during his guest appearance on the Breakdown podcast, explaining how the cost of acquiring Bitcoin has dramatically increased over time.

Exploring the Purchase Dynamics of Bitcoin

Rising Costs of Acquisition

Michael Saylor articulated the reality that acquiring Bitcoin has become increasingly costly. Since Strategy kicked off its Bitcoin holding strategy in August 2020, it bought 21,454 BTC for $250 million at an average price of $11,654 per coin. Since then, Bitcoin's value has surged, increasing 7.7 times to over $90,000. If we compare this to Bitcoin’s previous all-time high of $126,200 in October, this represents a staggering increase of approximately 10.8 times.

At present, Strategy holds 671,268 BTC, which it acquired at an average price of $74,972 each. This total investment of $50.3 billion could have been as low as $7.8 billion if they had made their initial purchase five years ago.

Saylor pointed out that while they've spent $50 billion to obtain 3.2% of Bitcoin's total supply, the same investment would yield significantly less in the future due to Bitcoin’s rising value. “When we realize that same capital again, Bitcoin may surpass its current price,” he remarked.

Future Predictions: Bitcoin's Price Potential

Saylor remains bullish despite Bitcoin's rising costs. He envisions Strategy acquiring between 5% and 7.5% of Bitcoin's total supply, after which their buying rate would slow down significantly. He predicts that Bitcoin could reach $1 million per coin if the firm acquires around 5% of the total supply, and could escalate to $10 million per coin with a 7% stake.

Several leaders in the cryptocurrency sector share Saylor's belief that these price targets could eventually be achieved.

Saylor also highlighted the concentration trend among Bitcoin holdings, especially as substantial investments funnel in from institutions like BlackRock’s iShares Bitcoin Trust (IBIT) and his own firm, with about 85% of Bitcoin's supply being held by early adopters or “OGs.” If institutional adoption continues and brings in further trillions, this could alter the ownership landscape even more.

Disclaimer: This article is meant solely for informational purposes and should not be regarded as financial advice. The opinions expressed herein represent the author's personal views and may not reflect the stance of The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions. The Crypto Basic holds no responsibility for any financial losses.