Michael Saylor, executive chairman of Strategy (MSTR), believes that bitcoin likely bottomed in early February at $60,000.
Speaking at a recent Mizuho event, Saylor reiterated his long-held view that dips are not necessarily related to valuations but are driven by seller exhaustion, analysts Dan Dolev and Alexander Jenkins wrote.
Trend reversals, he added, are driven more by capital structure and liquidity than investor sentiment.
Saylor is now seeing limited selling pressure amid growing demand from inflows into ETFs, which are absorbing daily supply, and companies moving their treasury assets into Bitcoin.
The next engines of Bitcoin and strategy
As for the catalyst for the next bull market, Saylor believes it will be the formation of bank credit and digital credit in addition to Bitcoin. This will allow Bitcoin to support more lending and credit activities beyond simple buy-and-hold demand.
Digital credit already exists, Saylor said, in the form of Strategy’s STRC preferred stock, whose lofty 11.5% yield remains well below the company’s expectations for long-term BTC appreciation. The strategy is to “transition” bitcoin “from a non-yielding asset to a driver of capital markets,” he said.
On the recently hotly debated topic of quantum computing, Saylor said the risks were exaggerated. The threat, he argued, is theoretical, probably decades away, and even then solvable.
Mizuho retained its Outperform rating on Stategy and its $320 price target, suggesting ~150% upside from the current $127.
