Michael Saylor, executive chairman of Strategy (MSTR), believes that bitcoin likely bottomed out in early February at $60,000.
Speaking at a recent Mizuho event, Saylor reiterated his long-held position that bottoms are not necessarily about 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 by investor sentiment.
Saylor now sees limited selling pressure amid rising demand from ETF inflows, which are absorbing daily supplies, and companies moving treasury assets into bitcoin.
Bitcoin and Strategy’s Next Drivers
As for the catalyst for the next bull market, Saylor believes it will be the formation of bank credit and digital credit on top of bitcoin. This will have bitcoin support more lending and credit activity beyond simple buy-and-hold demand.
Digital credit already exists, Saylor said, in the form of Strategy’s STRC preferred stock, whose hefty 11.5% yield remains well below the company’s expectation of BTC’s long-term appreciation. The strategy is to “stretch” bitcoin “from a non-relevant asset to a capital markets engine,” he said.
On the recently debated topic of quantum computers, Saylor said the risks are exaggerated. The threat, he argued, is theoretical, likely decades away and even then resolved.
Mizuho maintained its outperform rating on Stategy and $320 price target, suggesting about 150% upside from the current $127.
