“Our long-term plan is to sell billions, tens of billions, and then hundreds of billions of dollars of digital credit that’s backed by Bitcoin to buy the Bitcoin.” – 02:31
Remy Blaire interviews Michael Saylor, the Executive Chairman of Strategy, during the Money20/20 USA in Las Vegas. The conversation begins with the announcement of Strategy receiving a ‘B-‘ credit rating from S&P Global Ratings, marking a historic moment as the first Bitcoin treasury company to achieve such a rating from a major credit agency. Michael expresses his excitement about this milestone, emphasizing its significance for the entire industry and how it will unlock access to hundreds of billions of dollars in capital for their digital credit instruments.
Remy and Michael then shift their focus to the current state of the cryptocurrency market, particularly the price of Bitcoin. Michael shares insights from equity analysts, indicating a consensus price target of approximately $160,000 by the end of the year, while Strategy’s own guidance is set at $150,000. This optimistic outlook reflects the growing confidence in Bitcoin’s future value.
The discussion takes a turn as they delve into a recent acquisition by Strategy, where they purchased 390 Bitcoin totaling $43 million, bringing their total Bitcoin holdings to over 640,000. Michael highlights the uniqueness of this purchase, noting that it was entirely funded through credit instruments without selling any equity. He elaborates on their long-term strategy to leverage Bitcoin-backed digital credit to continue accumulating Bitcoin.
As the conversation progresses, Remy and Michael discuss the evolving regulatory landscape for digital assets, particularly the anticipated Clarity Act, which aims to provide clearer regulations for the industry. Michael points out the increasing acceptance of Bitcoin by major banks, suggesting that this trend will be a key driver for the industry, potentially leading to new all-time highs.
Remy also asks Michael to reflect on the recent liquidation event in early October. Michael describes Bitcoin as a highly volatile asset, attributing its fluctuations to its utility and the significant leverage available in the market. Despite this volatility, he remains optimistic about Bitcoin’s performance, predicting it will continue to outperform traditional markets.