MicroStrategy CEO Saylor: Bitcoin ETF surpasses $150 billion in scale, Trump is the key to success

At this week’s Binance Blockchain Week event, MicroStrategy Executive Chairman Michael Saylor called Bitcoin the cornerstone of the economic market, noting that the US Bitcoin ETFs managed by Wall Street giants such as BlackRock and Fidelity have reached nearly $150 billion in scale. He emphasized that this is closely related to the executive order signed by President Trump at the beginning of 2025 to establish a strategic Bitcoin reserve.

Saylor Highlights Massive Scale of Bitcoin Market in Dubai Speech

(Source: Youtube)

At the Binance Blockchain Week event held on December 2, MicroStrategy Executive Chairman Michael Saylor delivered a keynote speech, stating that Bitcoin is the cornerstone of the economic market. Saylor pointed out that the US Bitcoin ETFs managed by Wall Street giants such as BlackRock and Fidelity have grown to nearly $150 billion in scale, a figure that has soared from zero to this level in just one year, setting a new record in the ETF industry.

Saylor specifically emphasized the significance of the executive order signed by President Trump at the beginning of 2025 to establish a strategic Bitcoin reserve. This policy elevates Bitcoin to the level of a national strategic asset, alongside gold and oil reserves. The Trump administration also appointed crypto-friendly regulatory leaders, creating an unprecedentedly favorable environment for institutional adoption of Bitcoin.

Saylor urged people to embrace Bitcoin’s volatility, viewing it as a form of digital capital poised to transform finance through efficiency and transparency. His argument is that Bitcoin’s volatility is not a flaw but a normal feature of an emerging asset class. As the market expands and institutional participation increases, volatility will gradually decline, but the current phase of volatility is precisely what provides the opportunity for outsized returns.

MicroStrategy holds $60 billion worth of Bitcoin, making it one of the companies in the S&P 500 with the largest Bitcoin holdings. This scale of holding has a significant impact across the entire Bitcoin ecosystem. At Bitcoin’s current price of about $100,000, MicroStrategy holds approximately 600,000 Bitcoins, accounting for about 2.86% of the total Bitcoin supply of 21 million coins. This concentration makes MicroStrategy a systemically important participant in the Bitcoin market.

In his speech, Saylor emphasized the complementary relationship between Bitcoin ETFs and direct corporate holdings. ETFs provide a convenient investment channel for traditional investors, eliminating the need to deal with crypto wallets and custody issues. Direct corporate holdings, on the other hand, demonstrate absolute confidence in Bitcoin’s long-term value and allow participation in network governance and ecosystem development. Both models together are pushing Bitcoin from a fringe asset into the mainstream financial system.

Mizuho Maintains $484 Target Price with Professional Assessment

Investment bank Mizuho Securities recently reiterated its “Outperform” rating on MicroStrategy (MSTR) and maintained its $484 per share target price. This came after an analyst Q&A with MicroStrategy CFO Andrew Kang, where key information on capital operation strategies and Bitcoin asset management was revealed.

Mizuho’s $484 target represents significant upside from the current share price. This target is based on MicroStrategy’s Bitcoin holdings value, capital efficiency, and market premium. MicroStrategy’s business model is unique; it essentially acts as a Bitcoin leverage tool, raising funds by issuing stock and bonds to buy Bitcoin, then having the market price its shares at a premium to the value of its holdings.

This business model is especially attractive in a Bitcoin bull market. When Bitcoin prices rise, the value of MicroStrategy’s $60 billion in Bitcoin increases, and its fundraising ability is enhanced, allowing it to issue more stock or bonds to purchase more Bitcoin, creating a positive feedback loop. The expectation of this cycle often means MicroStrategy’s stock trades at a premium to its net asset value (NAV).

Mizuho’s continued optimism shows professional institutions’ confidence in MicroStrategy’s capital strategy. In the recent meeting with CFO Andrew Kang, analysts gained in-depth insights into the company’s capital operations and risk management measures, further strengthening Mizuho’s positive rating.

$1.44 Billion Fundraising Secures 21 Months of Dividend Payments

MicroStrategy recently raised $1.44 billion to bolster its US dollar reserves and ensure that preferred stock dividends for the next 21 months can be paid without using Bitcoin assets. This funding will also strengthen the company’s overall financial stability, enabling capital flexibility without having to sell its Bitcoin holdings.

The strategic significance of this fundraising is substantial. While MicroStrategy holds $60 billion in Bitcoin, its daily operations and dividend payments still require US dollars. If the company were forced to sell Bitcoin at unfavorable prices to pay dividends, it would violate its core long-term holding strategy. The $1.44 billion cash reserve provides a 21-month buffer, allowing the company to choose the optimal timing for handling its Bitcoin rather than being forced to sell.

The company stated that in the future, it will expand reserves when market per-share net asset value (mNAV) exceeds a certain threshold, and plans to avoid issuing new convertible bonds, instead using perpetual preferred stock as its primary financing tool. This means MicroStrategy’s capital strategy will center around mNAV, flexibly adjusting its capital structure and financing methods.

Three Pillars of MicroStrategy’s Capital Strategy

US Dollar Reserve Management: Maintain sufficient cash to cover operations and dividends, avoiding forced Bitcoin sales

mNAV-Oriented Financing: Raise funds when share price premium is high to maximize capital efficiency

Preference for Perpetual Preferred Stock: Reduce use of convertible bonds, lowering dilution risk and debt burden

The ingenuity of this capital strategy lies in leveraging the market’s premium pricing for MicroStrategy. When MSTR shares trade well above their net asset value, the company can issue relatively few shares to raise substantial funds, then use these funds to buy more Bitcoin, further increasing per-share Bitcoin holdings. This positive cycle is the key mechanism enabling MicroStrategy to rapidly accumulate Bitcoin.

CFO’s Pledge: Three Years of Operations Without Selling Bitcoin

Andrew Kang stated at the meeting that if Bitcoin prices remain at current levels, the company can sustain its operations for more than three years without selling any Bitcoin. He emphasized that selling Bitcoin would be a “last resort,” demonstrating that long-term holding remains MicroStrategy’s core strategy. This commitment provides important certainty for investors.

A three-year operational buffer means that even if Bitcoin prices experience significant volatility during this period, MicroStrategy will not be forced to sell. This financial resilience is unmatched by most other Bitcoin-holding companies. Many leveraged holders are forced to sell during price drops, incurring losses. MicroStrategy’s strategy ensures it will never be put in such a passive position.

Kang added that current monetization methods such as Bitcoin lending and covered calls are still in the “exploratory stage” and not yet formal strategies. Bitcoin lending means borrowing US dollars against held Bitcoin as collateral, without selling the Bitcoin. Covered calls involve selling Bitcoin call options to collect premiums as income. Both methods can generate cash flow without selling Bitcoin.

MicroStrategy’s cautious attitude toward these monetization methods shows its focus on risk management. Bitcoin lending involves risks of collateral value fluctuation and forced liquidation, while covered calls may limit upside gains. The company is still exploring these tools, meaning they will only be formally adopted after thorough risk/reward evaluation.

Overall, MicroStrategy’s future capital operations will continue to revolve around mNAV, adjusting prudently. mNAV (market per-share net asset value) measures the premium of MicroStrategy’s share price relative to its Bitcoin holdings value. When mNAV is high, the market is granting the company a higher premium, making fundraising most cost-effective. This dynamic capital management strategy enables MicroStrategy to expand its Bitcoin reserves under the most favorable market conditions.