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Title: Saylor Says BTC Treasury Companies Can Grow As Fast As They Can Issue Credit And Buy Bitcoin
In a recent statement at the BTC Prague conference, Michael Saylor, co-founder of Strategy (formerly MicroStrategy), emphasized that Bitcoin treasury companies can grow as quickly as they can issue credit and purchase Bitcoin. Saylor’s comment highlights the potential for rapid growth of these businesses.
According to Saylor, corporations acquiring Bitcoin through their treasuries will transform the equity market from being cash-based to Bitcoin-based. This shift in focus may be driven by the growing adoption of cryptocurrencies among institutional investors.
In an example provided by Saylor, he explained that a dentist can purchase $200,000 worth of Bitcoin every year. Over a 20-year period, this would result in the acquisition of approximately $2 million worth of Bitcoin. However, a publicly listed company could potentially achieve a much faster growth rate.
A corporation can leverage convertible bonds, junk bonds, or preferred stocks to finance its purchases of Bitcoin. This enables them to acquire $2 million worth of Bitcoin within just one month. By issuing securities and buying large amounts of Bitcoin on an ongoing basis, these companies may become profitable immediately, thereby enabling the issuance of additional securities and further purchases.
Saylor believes that this business model is both simple and elegant.
Source: cryptoslate.com
