Bitcoin’s recent price off is a sign of force, not weakness, according to the strategy (Mstr) Executive President Michael Saylor.
Speaking in an episode of the podcast “Coin Stories” by Natalie Brunell published on Friday, Saylor argued that the market is in a consolidation phase, since the holders of a long time sell parts of their batteries and institutions prepare for larger assignments. “If you move away and look at the one -year table, Bitcoin has increased 99%,” he said. “Volatility is coming out of the asset, that is a very good sign.”
Saylor described the current environment as one in which the first users who bought Bitcoin at single -digit prices are selling modest amounts to finance the needs of the real world, such as housing or enrollment.
He compared it with the employees of a high growth startup that liquidated actions on actions, not as a loss of faith but as a natural step towards maturity. That process, he said, is raiding the way for corporations and great funds to enter once volatility falls.
He dismissed the concerns that Bitcoin’s lack of cash flows makes it lower than traditional investments, noting that many valuable assets, from land to gold and art, also lack income flows.
“The perfect money does not have cash flows,” he said, adding that institutions anchored in decades of equity and link frames have taken to adapt, but will finally be forced to rethink.
Going beyond the value warehouse
A central theme of the conversation was the impulse of the strategy for reengineering credit markets when using Bitcoin as a guarantee, going beyond the simple narrative of the value store.
Saylor said conventional links are “performance hungry” and under collateralized, while Bitcoin -backed instruments can be structured to offer greater yields and lower risk.
He outlined the company’s favorite products suite (strike, conflict, strides and stretching) that are designed to provide investors with yields of up to 12% while they are very collateralized with Bitcoin.
In doing so, Saylor argued, the company is giving similar qualities to Bitcoin’s cash flow, which allows it to place credit and capital rates. “We are giving Bitcoin cash flow,” he said, framing it as a way of expanding institutional adoption and attracting more capital to the ecosystem.
The S&P 500 question
Saylor also approached why the strategy has not yet been included in the S&P 500 despite its scale and profitability.
He said the company only became eligible this year after the changes in the accounting rules and said that Tesla also waited beyond its first eligibility quarter. He expects an eventual inclusion as the market feels more comfortable with Bitcoin’s treasure model, with which he leaves at the end of 2024.
TRANSFORMING YEARS
Looking towards the future, Saylor portrayed the emergence of Bitcoin Treasury companies as analogues to the first days of the petrochemical industry, with multiple products, business models and fortunes that emerge in a chaotic but transformative decade.
He predicted that Bitcoin would continue to appreciate an average rate close to 29% per year during the next two decades, feeding new forms of credit and capital instruments.
Finally, he gave an optimistic tone about Bitcoin and society more widely, saying that a large part of today’s toxicity is amplified by paid bots and campaigns instead of a genuine discontent.
“Bitcoin is a peaceful, fair and equitable way to solve our differences,” he said. “As everyone embraces it, peace will extend, equity will extend, equity will extend.”
