In a recent interview during Yahoo Finance’s Invest event, Michael Saylor, the founder and executive chairman of Strategy (MSTR), expressed a strong conviction that bitcoin will surpass gold as a leading asset class by 2035. He pointed out that with bitcoin’s current market capitalization sitting at approximately $2.04 trillion—compared to gold’s $29.2 trillion—this would require the price of bitcoin to exceed $1.4 million per coin in the coming years.
Saylor emphasized that the nature of bitcoin, created by its pseudonymous founder, allows for a fixed supply of 21 million coins, which are mined using a process known as proof of work. By 2035, he noted that approximately 99% of all bitcoin will have been mined, which could potentially create scarcity and drive value.
This optimistic outlook comes amidst recent volatility in the cryptocurrency market, where various digital assets, including bitcoin, have faced significant corrections since mid-October. Data from aggregator CoinGlass shows that there has been a substantial unwinding of leveraged positions in the crypto derivatives market. Despite these challenges, bitcoin has seen an increase of over 8% since the start of the year, although its performance has lagged behind that of the S&P 500 and the Nasdaq Composite. Meanwhile, Strategy’s stock has fallen by 22% in the same time frame, while gold has experienced a remarkable 60% increase.
When addressing concerns about the decline in Strategy’s stock and the potential erosion of faith among bitcoin investors, Saylor firmly disagreed, asserting, “I don’t think they’re losing faith.” Under his leadership, Strategy has shifted from its origins as a business intelligence software firm, previously known as MicroStrategy, to an investment vehicle that heavily focuses on bitcoin and related financial instruments. This transition has involved utilizing the company’s free cash flow while also issuing debt and equity to amass a substantial bitcoin reserve.
Recent disclosures reveal that Strategy acquired an additional 487 bitcoin, raising its total holdings to 641,692 BTC, which represents approximately 3% of the total bitcoin supply. Saylor remained optimistic about the future of the industry, stating, “The fundamentals of the industry are so much better today than they were 12 months ago.” He also highlighted the current negative market sentiment as a unique opportunity for equity investors to make informed decisions.
