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Unpacking Michael Saylor's Bitcoin Gold Rush

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Michael Saylor: The Bitcoin Evangelist

Michael Saylor is the Executive Chairman of MicroStrategy ((MSTR - Free Report) ) and has gained recognition within the Bitcoin community for the company’s first-of-its-kind and bold investment in Bitcoin. Saylor has advocated for Bitcoin as “digital gold” and a better alternative to the shiny metal.

Presently, it’s challenging to find a more prominent proponent of Bitcoin than Saylor. Since he got MSTR on the “Bitcoin Standard” MSTR has generated billions in profits and made him the industry’s top Bitcoin evangelist.

“Those who can both be right and sit tight are uncommon.” ~ Jesse Livermore

Regardless of how you feel about Bitcoin, Saylor is worth listening too. He has exhibited extreme conviction in his Bitcoin bull thesis, has never waivered from his stance, and, most importantly, has been proven correct. Below is an excerpt from a recent interview where he illustrates his long-term view of Bitcoin:

“We’re in the Bitcoin gold rush. It started in January of 2024, and it will run until about November of 2034. How many people know what will happen in November of 2034? In November of 2034, 99% of all the Bitcoin will have been mined, and the last 1% will come out over the next 100 years. So, for all practical purposes, the stock-to-flow ratio of Bitcoin is infinity, and in 2034, it becomes noise.

"At the beginning of the gold rush, no bank could custody Bitcoin, no institutional investor could buy Bitcoin, no Wall Street trading firm. When those spot ETFs were approved, that created a fire or an avalanche. The genie is out of the bottle.

"It doesn’t matter who’s elected president next, it doesn’t matter who is the head of the SEC. No politician’s opinion, no banker opinion, no regulator opinion, matters after that date. That kicked off the gold rush.”

Let’s breakdown in simple terms:

Bitcoin Scarcity, ETF Approval, & Institutional Adoption

· Scarcity: There will only ever be 21 million Bitcoin available.Unlike the dollar, gold, or any other fiat currency, Bitcoin has a fixed supply.

· ETF Approval: Bitcoin ETFs serve two purposes in Saylor’s bull thesis. First, ETFs help generate demand from institutional investors and folks who could not gain access to Bitcoin before. Just how big is the demand? Blackrock’s ((BLK - Free Report) ) iShares Bitcoin ETF ((IBIT - Free Report) ) has already surpassed its legacy iShares Gold ETF ((IAU - Free Report) ) in assets in 10 months. Second, the approval of ETFs makes it impossible for regulators to walk back their stance or shut down Bitcoin.

· Institutional Adoption: Bitcoin ETFs, of which Coinbase ((COIN - Free Report) ) is the custodial exchange, will allow continued access for companies that follow MSTR’s lead, nation states like El Salvador, and pension funds/mutual funds.

Is a U.S. Bitcoin Strategic Reserve Coming?

On Nov. 6, Wyoming Republican Senator Cynthia Lummis tweeted, “WE ARE GOING TO BUILD A STRATEGIC BITCOIN RESERVE.” Lummis is an ally of President-Elect Donald Trump and has been a staunch proponent of Bitcoin for years. Trump, who was once anti-crypto, has evolved and spoke at a Bitcoin conference earlier this year.

The Bitcoin Halving

Historical data shows that the best time to own Bitcoin is ~150 days after a “halving” and near a presidential election.

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Bottom Line

Michael Saylor has been spot-on with his Bitcoin prediction (and backed it up with a monstrous bet). In a recent interview, he broke down his long-term bullish thesis for Bitcoin.

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