Michael Saylor, executive chairman of MicroStrategy, told Bloomberg Television that bitcoin has found its bottom just under $60,000 and is at "the beginning of a bull market." While Saylor did not specify a timeline for bitcoin to return above $100,000, he expressed confidence in the cryptocurrency's long-term trajectory.
Saylor attributed positive momentum to four key factors: a favorable regulatory environment, accelerating bank adoption, the growth of tokenized securities, and strengthening digital credit networks. He noted that bitcoin recently tested its 200-week moving average before rebounding to trade at a 25% premium to that level.
According to Saylor, bitcoin should grow 20% to 30% annually over the next two decades, stressing he is not focused on short-term price movements. He characterized bitcoin as "the king of commodities" and described it as an asset that cannot be artificially increased in supply.
MicroStrategy's Bitcoin Holdings
MicroStrategy disclosed a 250 BTC purchase on October 12, bringing its total holdings to 848,250 bitcoin. Saylor stated that the company likely acquired more bitcoin than any other company in the year and plans to continue increasing its holdings by issuing credit-type securities.
The company sold bitcoin earlier in the year, with initial sales of 32 BTC drawing significant attention. Saylor characterized MicroStrategy as a structured finance company that moves between equity, cash, credit, and bitcoin based on market conditions. Since its first bitcoin purchase in August 2020, bitcoin has appreciated approximately 38% annually, while MicroStrategy's stock has returned about 52% to 53% annually during the same period, according to Saylor.
Market Context
At the time of Saylor's comments, bitcoin was trading near $83,900. MicroStrategy also faces a separate test this week, as MSCI is scheduled to announce by October 16 whether it will adopt new eligibility rules that could affect the company's inclusion in global equity indexes. JPMorgan has estimated that approximately $2.8 billion in flows could be at risk if MicroStrategy is excluded.
