Michael Saylor, CEO of Strategy (MSTR), believes Bitcoin likely bottomed in early February at $60,000.
Speaking at a recent Mizuho event, Saylor reiterated his long-held view that the lows are not necessarily about valuations but are instead driven by seller exhaustion, analysts Dan Dolev and Alexander Jenkins wrote.
The trend changes, he added, are driven more by capital structure and liquidity than by investor sentiment.
Saylor now sees limited selling pressure amid rising demand from ETF inflows, which are absorbing daily supply, and from companies moving treasury assets into bitcoin.
Bitcoin and the next strategy drivers
As for the catalyst for the next bull market, Saylor believes it will be the formation of bank credit and digital credit in addition to bitcoin. This will see Bitcoin support greater lending and credit activity beyond simple buy-and-hold demand.
Digital credit already exists, Saylor said, in the form of Strategy’s STRC preferred stock, whose robust 11.5% yield remains well below the company’s expectations for BTC’s long-term appreciation. The strategy is to “stretch” bitcoin “from a non-yielding asset to a capital markets engine,” he said.
On the recently hotly debated topic of quantum computing, Saylor said the risks are overblown. The threat, he argued, is theoretical, will probably take decades, and even then it will have a solution.
Mizuho maintained its Outperform rating on Stategy and its $320 price target, suggesting an upside of around 150% from the current $127.
