Podcaster Patrick Bet-David challenged Michael Saylor on the long-term value of MicroStrategy, running calculations that suggest the company could become a $10 trillion giant within two decades.
“MicroStrategy is worth $73 billion today,” Bet-David said on Nov.19, 2024, in a podcast with Saylor. “If you’re saying 0.1% [Bitcoin adoption] today is going to go to 7%, that’s 700x, right? If Bitcoin is at $90,000 today and it goes to $13 million, you’re expecting to 144x MicroStrategy in 21 years. If I do 144 times $73 billion, you’re estimating it to be a $10.5 trillion company in 21 years. Is that correct?”
Saylor, the co-founder and executive chairman of MicroStrategy — now known as Strategy — agreed with the math.
“With that math, yeah, Bitcoin goes from $90,000 to $13 million. So multiply 13 [million] divided by 90,000, and it gets you to a big number,” he replied.
At the time of writing, Strategy’s market cap is $85.23 billion, and Bitcoin is priced at $97,500. If Bitcoin reaches $13 million, MicroStrategy’s market cap could grow proportionally, reaching approximately $11.36 trillion based on the current ratio.
MicroStrategy has consistently expanded its Bitcoin holdings, solidifying its position as the largest corporate holder of the asset.
As of Feb. 2, the company held 471,107 BTC, valued at approximately $46 billion.
In the fourth quarter of 2024 alone, it purchased 218,887 BTC for $20.5 billion, marking its largest-ever quarterly acquisition. Despite this aggressive accumulation, the company reported a net loss of $670.8 million for the quarter, largely due to Bitcoin impairment charges. However, new accounting rules set to take effect in Q1 2025 will allow the company to measure Bitcoin holdings at fair value, eliminating these write-downs in future earnings reports.
Susquehanna International Group, a major institutional investor, has been increasing its stake in MicroStrategy. The firm disclosed that it now owns 11.6 million MicroStrategy shares, up from 8.4 million in the previous quarter. This represents a 5.1% stake, reinforcing institutional confidence in the company’s Bitcoin-focused strategy.
The investment firm simultaneously reduced its stake in Super Micro Computer, suggesting a shift in priorities toward Bitcoin-based investments.
