New York, Thursday, 24, 2024-MicroStrategy, the largest corporate holder of Bitcoin, has grown its market capitalization from $1.5 billion to over $40 billion in just four years. Co-founder Michael Saylor attributes the surge to the company’s innovative approach of merging Bitcoin with traditional finance.
Speaking to The New Zealand Herald, Saylor explained that MicroStrategy’s business model is focused on issuing securities backed by Bitcoin to acquire more of the asset, driving up its scarcity. Despite being labeled as an “infinite money glitch” by critics, Saylor rejected the idea, stating that the company’s strategy represents a “digital transformation of the capital markets.”
MicroStrategy, now holding over 252,000 Bitcoin, aims to become a “Bitcoin bank” with a potential trillion-dollar valuation. Saylor highlighted that the company bridges traditional finance and digital assets, attracting billions of dollars into Bitcoin investments. The firm has issued convertible note offerings to finance further Bitcoin acquisitions and plans to create financial products linked to Bitcoin.
However, Saylor remains optimistic, seeing MicroStrategy as a pioneer in digital finance, despite some skepticism from traders shorting the stock due to its high valuation relative to its Bitcoin holdings.
