Michael Saylor Maintains $13 Million Bitcoin Price Prediction
MicroStrategy controls more than 1% of the Bitcoin supply, and co-founder Michael Saylor remains bullish on the asset.
MicroStrategy CEO Michael Saylor predicts Bitcoin will reach $13 million within the next two decades.
The billionaire cryptocurrency investor said that Bitcoin's recent volatility has not deterred his company. He also pointed out the benefits of investors choosing to buy MSTR stock instead of holding Bitcoin directly.
In an interview with CNBC, Saylor predicted that Bitcoin will maintain a compound annual growth rate (CAGR) of 44% in the short term, before slowing down to 5% per year. He said:
“My long-term forecast is that Bitcoin will reach $13 million in 21 years. Currently, Bitcoin accounts for only 0.1% of total global investment capital, I believe that number will increase to 7%. Ultimately, Bitcoin will have a return of 8% higher than the S&P and a volatility of 8% higher than the S&P.”
To achieve this projection by 2045, Bitcoin would need to maintain an average CAGR of around 29.56%. The MicroStrategy CEO made a similar prediction during a speech at the Bitcoin 2024 Conference in Nashville.
According to the billionaire, $13 million is the base case scenario. The less optimistic case is $3 million (as per VanEck), and the most optimistic scenario could be as high as $49 million – nearly 1,000 times higher than the current price.
Saylor predicts that Bitcoin will continue to experience huge volatility in the future, as it is a globally traded, 24/7, and highly liquid asset. He argues:
"In an emergency like a missile attack, you can't move your $10 million apartment to Singapore, or use 10x leverage to short $100 million in New York real estate. But with Bitcoin, you can short $100 million worth of Bitcoin by borrowing $10 million."
As for MicroStrategy (MSTR), Saylor said the company pioneered the issuance of convertible bonds backed by Bitcoin to buy BTC.
According to Saylor, investing in MSTR is like a "tax-deferred BTC yield vehicle," allowing users to borrow money to buy BTC at interest rates that individuals cannot access. Since adopting a BTC reserve strategy in 2020, the company has been actively investing in Bitcoin.
As of the time of writing, the giant MicroStrategy owns 226,500 Bitcoins worth $12.85 billion, with an average purchase price of $37,013 per coin. Based on the cost of purchase, the software company's portfolio of more than 1% of the total Bitcoin supply is up 53.3%, or $4 billion, after just four years of investment.
In contrast, Bitcoin critic Peter Schiff has criticized Michael Saylor for boasting about the returns of both Bitcoin and MSTR, calling Saylor’s projections “shortsighted nonsense.” Schiff argued on X:
“MSTR stock is down 40% from its 52-week high and 6% below its 2021 high. Real yields are not as rosy as you describe and will soon get worse.”
On the other hand, crypto policy is also becoming a hot topic in the upcoming US presidential election. Republican heavyweight Donald Trump has changed his stance in favor of Bitcoin, despite having been a strong critic of crypto. Meanwhile, Democratic candidate Kamala Harris has made little mention and has not yet proposed any policies related to crypto.
On this issue, Saylor commented: “The political landscape has changed. There is no doubt that the Republican Party is very pro-crypto, while the Democratic Party tends to be quite centrist.”
The crypto community is looking forward to the second presidential debate, which will take place at 08:00 AM on September 11.
