Michael Saylor is the co-founder and chairman of MicroStrategy, a software development company that has strongly emphasized Bitcoin in recent years. The company began investing in Bitcoin in August 2020 and has consistently bought tokens since then. MicroStrategy has acquired more than 1% of the entire Bitcoin supply, with holdings worth more than $15 billion at current prices.
MicroStrategy acquired the tokens for a cost basis of under $35,000, meaning that the position is up more than 100% in total. Additionally, the company has used convertible notes to fund Bitcoin purchases, a somewhat risky move that has played out in MicroStrategy’s favor.
Saylor has become a hugely outspoken proponent of Bitcoin, constantly posting on social media and appearing on different podcasts to discuss his bullish views on Bitcoin and crypto.
“I think it keeps going up forever. I mean, there’s no reason we can’t go to $10 million a coin,” Saylor said on the Lex Fridman podcast. This is just one of the several times that Saylor has mentioned $10 million as a price target for Bitcoin. Each time he applies a similar logic to explain his reasoning.
Saylor points out that much of the world’s wealth is in value-storing assets, such as gold, art, and real estate. He believes that Bitcoin will soon overtake these other assets as a better store of value, as the code determining Bitcoin’s supply is entirely available and predictable. He argues this is the most reasonable way to invest in a store-of-value asset. He believes that as more people learn about Bitcoin, more people will continue to invest in the asset, increasing the price.
If you bought $50 worth of Bitcoin today, you could own approximately 0.0007 BTC. If the price of Bitcoin goes to $10 million, which would increase nearly 14,000%, your 0.0007 BTC would be worth $7,000.
It is also important to note that Saylor has a vested interest in making Bitcoin attractive to prospective investors, as he and his company would benefit from price increases. He has rebranded MicroStrategy into “the world’s first Bitcoin development company,” meaning that the company would further benefit from increased Bitcoin adoption. Taking Saylor’s predictions with a grain of salt is important, as bringing in more Bitcoin investors is in his best interest.
Saylor’s logic is sound. With Bitcoin’s known supply, the price could theoretically continue to rise in perpetuity if more people invest. Getting more people to invest is the only hang-up to reaching the $10 million mark.
