Michael Saylor Reveals Strategy to Acquire Up to 7% of Bitcoin Supply

Michael Saylor, co-founder of Strategy, a Bitcoin treasury-focused company, stated that the Nasdaq-listed firm might eventually own as much as 7% of Bitcoin’s total supply, capped at 21 million coins.

In an interview with CNBC, Saylor, who has been instrumental in shaping Strategy’s Bitcoin treasury plan, indicated that the company does not aim to acquire the entire digital asset. He expressed a desire for “everyone else to have their piece” of Bitcoin.

Saylor remarked, “I don’t think we’ll get all of [the Bitcoin]. I don’t think in the range of 3-5% or 3-7% is too much.”

He further added, “We wouldn’t want to own all of it—we want everyone else to have their piece.”

As it stands, Strategy—formerly known as MicroStrategy—currently owns approximately 3% of Bitcoin’s existing supply of 19,900,346 coins. It’s important to note that there will only ever be 21 million Bitcoin in existence, with the last being minted around the year 2140.

The company, headquartered in Tysons Corner, Virginia, has established itself as the world’s largest corporate holder of Bitcoin, with a total of 628,791 digital coins valued at $72 billion, calculated at today’s Bitcoin price of $114,692. Strategy began its Bitcoin buying spree back in 2020.

If Strategy were to secure 7% of Bitcoin’s total supply, this would amount to 1.47 million BTC, currently worth around $169 billion.

The company experienced financial strain during the COVID-19 pandemic, which severely impacted their cash reserves. In response, they shifted focus from software development to Bitcoin acquisition in August 2020.

Saylor, who served as the CEO of Strategy at that time, has dubbed Bitcoin the “supreme asset” due to its scarcity and has encouraged other organizations to adopt similar strategies to safeguard their capital.

On a recent trading day, Strategy’s stock price dipped more than 6%, falling below $380—a pivotal threshold not seen since early July. Nonetheless, since the company’s inaugural Bitcoin purchase in August 2020, the stock has soared over 2,488%.

Presently, Strategy adheres to a business model where it buys and holds Bitcoin, allowing investors to purchase its stock—denoted by MSTR—to gain exposure to the cryptocurrency without having to directly manage Bitcoin themselves. The company often issues debt to fund its Bitcoin acquisitions.

During a recent earnings call, Saylor mentioned that Bitcoin prices could potentially plummet by 80% to 90%, yet the company would manage to withstand such downturns without having to sell its BTC assets.

Users on the Myriad platform largely believe that it’s unlikely Strategy will sell any Bitcoin in the near future, estimating less than an 8% chance of any BTC sales occurring before the end of 2025.

Benchmark analyst Mark Palmer recently raised the price target for Strategy’s stock (MSTR) to $705, reflecting an 85% increase from its current market price.

As more smaller Nasdaq-listed companies adopt a Bitcoin treasury strategy, experts warn that this path may not be suitable for every organization and carries inherent risks.