MicroStrategy Stock Surges to Record High on Announcement of ‘Bitcoin Bank’ Plans
MicroStrategy’s MSTR stock has reached an all-time high following the company’s recent revelation of its ambitious goal to establish itself as a trillion-dollar Bitcoin bank.
During discussions with Bernstein analysts, MicroStrategy’s founder, Michael Saylor, expressed the company’s aim to achieve a $1 trillion valuation as the leading Bitcoin bank globally.
This objective would be supported by the company’s aggressive accumulation of Bitcoin, which analysts have forecasted to reach a price target of $290 per share.
In response to this development, MSTR stock surged to an unprecedented peak of $212.50, marking a remarkable 15% surge during the trading session on October 11th, breaking through the $200 resistance level.
The Vision for a Bitcoin Bank
Notably, Saylor emphasized that in terms of performance, nothing surpasses Bitcoin except for more Bitcoin.
“The only thing superior to #Bitcoin is additional Bitcoin.”
Presently, MicroStrategy holds 252,220 BTC, valued at approximately $15.8 billion as per data from Bitcoin Treasuries. While Saylor has refrained from disclosing whether the company intends to sell its Bitcoin holdings, the end goal was disclosed recently.
So, what exactly does a Bitcoin bank entail?
Saylor envisions a Bitcoin bank functioning akin to traditional asset classes, creating financial structures around them. According to the Bernstein report,…
“Michael envisions MicroStrategy as primarily focused on developing Bitcoin capital market instruments spanning equity, convertibles, fixed income, and preferred shares, among others.”
Additionally, Saylor has previously projected that Bitcoin could reach anywhere from $3 million to $49 million by 2045, expanding its presence in the global capital landscape.
Consequently, he believes that generating revenue through Bitcoin-based financial instruments such as bonds or stocks would be more feasible than lending out MicroStrategy’s Bitcoin reserves.
Interestingly, as far back as 2010, Hal Finney, an early contributor to the Bitcoin network, had floated a similar concept.
However, there have been calls for sophisticated self-custody technology to ensure the integrity of such a system.
Notably, some market experts anticipate a significant Bitcoin surge serving as a positive driver for MicroStrategy’s valuation.
Financial analyst Ben Franklin projects that with MicroStrategy’s strong financial position and the appreciation of Bitcoin, the company’s value could witness a surge of 6x to 10x.