MicroStrategy Stock Hits Record High with Plans for Future as Leading ‘Bitcoin Bank’
MicroStrategy’s MSTR stock surged to its highest level ever following the announcement of its ambitious vision to evolve into a trillion-dollar Bitcoin bank.
The founder of MicroStrategy, Michael Saylor, shared with analysts at Bernstein the company’s aspiration to achieve a market cap of $1 trillion, positioning itself as the premier BTC financial institution.
This strategic milestone is expected to be driven in part by the relentless acquisition of the primary cryptocurrency globally, with analysts setting a price target of $290 for the stock.
In response to this development, MSTR reached an unprecedented peak of $212.50, signaling a remarkable 15% surge during the intraday trading session on October 11th, decisively breaking through the $200 resistance level.
The End-Game for the Bitcoin Bank
Reflecting on the surge in MSTR’s performance, Saylor emphasized that in the realm of investments, nothing outpaces Bitcoin except for acquiring more Bitcoin.
“The only thing that surpasses #Bitcoin is amassing more Bitcoin.”
Presently, MicroStrategy holds a substantial 252,220 BTC, equivalent to approximately $15.8 billion, based on data from Bitcoin Treasuries. Saylor has consistently declined to disclose whether the company intends to sell its Bitcoin reserve or hold it for its ultimate vision.
However, the grand objective was articulated clearly in recent times.
So, what does being a Bitcoin bank entail?
Saylor envisions a BTC bank operating similarly to traditional financial institutions by structuring various financial products around the digital asset. A segment of the Bernstein report articulated,
“Michael envisions that MSTR’s core business lies in creating financial instruments linked to Bitcoin, including equities, convertible securities, fixed income products, and preferred shares, among others.”
Saylor had previously speculated that Bitcoin could potentially reach values between $3 million and $49 million by 2045 as it solidifies its position in the global economic landscape.
Consequently, Saylor foresees that generating profits through developing Bitcoin-based financial tools such as bonds or stocks would be more lucrative than loaning out the Bitcoin reserves held by MicroStrategy.
Coincidentally, as far back as 2010, Hal Finney, a pioneer contributor to the Bitcoin network, had proposed a comparable concept.
Nonetheless, there have been calls for the implementation of advanced self-custody technology to uphold the integrity of such a system.
On a different note, certain financial experts anticipate that a vigorous surge in Bitcoin could serve as a constructive driver for enhancing the value of MSTR in the market.
As per financial advisor Ben Franklin, considering MicroStrategy’s robust financial standing and the upward trend of Bitcoin, the value of MSTR could potentially escalate by 6 to 10 times.