Michael Saylor, Executive Chairman of Strategy (formerly MicroStrategy), has made a bold prediction that Bitcoin could reach $13 million per coin by 2045, driven by an average annual return of 30% over the next two decades. This forecast, shared during a recent CNBC interview, underscores his unwavering confidence in Bitcoin's long-term potential.
Strategy's Aggressive Bitcoin Accumulation
Strategy isn't just making predictions—it's putting capital behind them. The firm plans to raise $1 billion through a new IPO of 10% yield preferred stock, exclusively to purchase more Bitcoin. Unlike traditional leverage, this innovative structure involves perpetual preferreds, eliminating refinance risk by providing capital that never matures.
"We’re offering fixed USD yield and converting it into BTC performance. It’s a low-risk, scalable way to create a long-duration balance sheet backed by Bitcoin."
— Michael Saylor
Why This Strategy Works
- Outperforming Market: Strategy’s preferred issuances have delivered up to 29% returns, while broader preferred markets stagnate.
- Supply Squeeze: With only 450 BTC mined daily (worth ~$45 million), demand from ETFs and corporate treasuries is intensifying.
- Regulatory Tailwinds: Clearer regulations, institutional adoption, and new accounting standards are reinforcing Bitcoin’s legitimacy.
Transparency and Security Measures
Criticism over proof-of-reserves transparency prompted Strategy to highlight its KPMG-audited Bitcoin holdings. The firm is also exploring advanced methods like zero-knowledge proofs to verify reserves without exposing custodial vulnerabilities.
👉 Discover how Bitcoin’s scarcity drives its long-term value
FAQs: Bitcoin’s Future and Strategy’s Moves
Q: How realistic is a $13 million Bitcoin price by 2045?
A: Saylor’s projection hinges on 30% annualized returns, historically achievable during Bitcoin’s bull cycles but dependent on sustained adoption and macroeconomic factors.
Q: What’s unique about Strategy’s funding approach?
A: Perpetual preferred stock provides non-maturing capital, avoiding refinancing risks while leveraging Bitcoin’s appreciation potential.
Q: How does Bitcoin’s limited supply affect its price?
A: With fixed issuance and rising demand from ETFs/corporations, Bitcoin’s scarcity could trigger significant price appreciation.
👉 Learn why institutions are betting big on Bitcoin
Key Takeaways:
- Bitcoin’s 2045 price target: $13 million based on compounding growth.
- Strategy’s playbook: Raising $1B via preferred stock to buy BTC.
- Market dynamics: Scarcity and institutional demand are tightening supply.
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