Bitcoin’s recent stretch of muted price action is a sign of strength, not weakness, according to the strategy (Mstr) Executive President Michael Saylor.
Saylor talked about an episode of Natalie Brunell’s “Coin Stories” podcast released Friday, arguing that the market is in a consolidation phase as long -term holders sell parts of their stacks and institutions are preparing for larger allocations. “If you zoom out and look at one year’s chart, Bitcoin has risen by 99%,” he said. “The volatility comes out of the asset – it’s a really good sign.”
Saylor described the current environment as one in which the early adopters who bought Bitcoin at single -digit prices sell modest amounts to finance real needs, such as housing or teaching.
He compared it to employees in a high growth starting liquidation of stock options, not as a loss of faith, but as a natural step towards maturity. This process, he said, paves the way for businesses and great means to enter when volatility falls.
He rejected concern that Bitcoin’s lack of cash flows makes it inferior traditional investments and pointed out that many valuable assets – from country to gold to art – are also lacking income streams.
“The perfect money has no cash flows,” he said, adding that institutions that are rooted in decades of equity-and-bond frames have been slow to adapt, but will eventually be forced to consider again.
Goes beyond the store with value
A central theme of the conversation was the strategy of the strategy to Rengineer credit markets by using Bitcoin as security that moves beyond the simple tale of value of the value.
Saylor said conventional bonds are “yield-hungry” and sub collateralalized, while Bitcoin-supported instruments can be structured to offer higher yields and lower risk.
He outlined the company’s package of preferred warehouse products strikes, strife, steps and stretches-which is designed to give investors a yield of up to 12%, while strongly over-collateralized with Bitcoin.
Thus, Saylor claimed that the company gives Bitcoin money-like qualities so that it can be slot into both credit and stock indices. “We give Bitcoin money,” he said, framing it as a way of expanding institutional adoption and drawing more capital into the ecosystem.
S&P 500 question
Saylor also treated why strategy is not yet included in the S&P 500 despite its scale and profitability.
He said the company was only justified this year after changes in accounting rules and noted that Tesla also waited beyond the first quarter of eligibility. He expects possible inclusion as the market becomes more comfortable with the Bitcoin Treasury model, which he dates to the end of 2024.
Transformative years
Looking ahead, Saylor depicted the emergence of Bitcoin Treasury companies as analogous to the early days of the petrochemical industry, with several products, business models and wealth that arises in a chaotic but transformative decade.
He predicted that Bitcoin would continue to appreciate at an average rate near 29% annually over the next two decades, which burned new forms of credit and stock instruments.
Finally, he struck an optimistic tone about both Bitcoin and the community more broadly, saying that much of today’s online toxicity is amplified by bots and paid campaigns rather than true dissatisfaction.
“Bitcoin is a peaceful, fair and fair way for us to settle our differences,” he said. “When everyone embraces it, peace will spread, justice spreads, justice spreads.”
