Bitcoin’s Unconventional Attractiveness: A CEO’s Warning on Wall Street’s Misunderstanding

Wall Street Still Doesn’t Get Bitcoin, Says MicroStrategy’s Michael Saylor

In a recent interview with Fox Business, Michael Saylor, CEO of MicroStrategy, reaffirmed his stance that the financial industry has yet to fully grasp the significance and potential of Bitcoin. According to Saylor, the average annualized return for Bitcoin exceeds 50%, making it an attractive option for corporate treasuries.

Despite this, he believes Wall Street continues to undervalue firms that have already adopted Bitcoin as a capital allocation standard. He cited MicroStrategy’s own success in going from being the least profitable to the fourth most profitable U.S. financial firm, all while maintaining its price-to-earnings ratio. This, he claims, is evidence that traditional valuation models are failing to account for Bitcoin’s impact.

Saylor went on to emphasize that companies relying solely on U.S. Treasuries or other traditional assets trail market returns by around 10% each year. He argued that adopting Bitcoin as a capital standard could lead to an annual outperformance of approximately 40% over the S&P 500, further solidifying his stance on the cryptocurrency’s potential.

Data from Alva, a crypto analytics platform, also supports Saylor’s view. The figures suggest that despite whale selling pressure, institutional investors continue to absorb Bitcoin supply. This increase in demand is accompanied by rising daily volumes and higher open interest, indicating a strengthening structural demand for the asset.

Source: blockonomi.com