10 Highlights From Michael Saylors Bitcoin2024 Keynote Address
On July 26, at Bitcoin 2024 in Nashville Michael Saylor gave a compelling 36 minute presentation on why individuals, corporations, and countries (both rich and emerging) should embrace an aggressive Bitcoin strategy. You can watch the entire talk:
… or you can read my 10 highlights below:
#1 — Saylor Noted That the $900 Trillion In Total Global Asset Value Is About Evenly Split Between Utility Assets & Store of Value Assets
Saylor explained that people buy a house to live in it. That asset has utility. When you buy bonds, that’s a store of value. The way we store value is crippling capital preservation and setting the stage for the Bitvoin revolution.
#2 — Inflation Is Just One Of Many Factors Diluting The Value Of Financial Assets
Michael went through a laundry list of factors that, in addition to inflation, dilute the value of financial assets. Saylor estimated that accounting for these other factors (e.g. weather, competition, obsolescence, politics …) yields an average life of ~30 years for financial assets. As a result, people get frustrated with financial assets and turn to physical assets to preserve capital.
#3 — Many Factors Also Dilute The Value Of Of Physical Assets
While there’s a wide range of physical assets that can be used to store value (e.g. cars, yachts, houses, silver, gold, paintings, and land), they depreciate, incur maintenance costs, and are often taxed, in addition to other factors diluting their value:
So Michael estimates physical assets have a life of just 50–75 years.
#4 — If You Can’t Win The Game, You Need A New Game … Bitcoin
As a digital asset, Bitcoin is immaterial, so it doesn’t depreciate and it has no maintenance costs. So if custodied at 10 basis points, it has a 1,000 year life. If self custodied, Bitcoin has ~10,000 year life. It’s the answer to the disastrous limitations of physical and financial assets.
#5 — A 20X Multiple On The $13.5T In Inflation Costs Bitcoin Saves Yields A Value Of $270 Trillion
Using the math above as a base case yields a value of $13M for each of the 21 million outstanding Bitcoin per in 2045, accounting for 7% of the total value of all global assets.
#5 —Individuals That Share Saylor’s Vision, Should Follow Saylor’s Actions
As the world knows, Saylor has made Bitcoin the primary Treasury asset at Microstrategy. Saylor uses excess cash and borrowing to increase Microstrategy’s exposure to Bitcoin. He suggests others do the same.
#6 The More Aggressive The Bitcoin Strategy, The Higher Expected Returns For Individuals
Saylor went through a series of increasingly aggressive portfolio construction strategies. At one end is not investing in Bitcoin at all. On the other end is converting all excess assets and cash to Bitcoin, plus getting a mortgage to buy Bitcoin, and moving to a lower tax jurisdiction to save on taxes and buy more Bitcoin:
Given Saylor’s $13M base case price projection for Bitcoin in 2045, the most aggressive strategy yields a portfolio value estimate of $213M:
#7 Saylor Highlighted That Corporations Could Similarly Benefit From An Aggressive Bitcoin Strategy
Given the $13M base case price expected for Bitcoin in 2045, a company valued at $100/sh today could be worth $28,000 price/sh in 2045 if it deployed Saylor’s most aggressive Bitcoin strategy:
#8 — Microstrategy’s Aggressive Acquisition Of Bitcoin Since 2020 Has Richly Rewarded Investors
As a reality check on the projections outlined above, Saylor highlighted Microstrategy’s spectacular returns since deploying an aggressive Bitcoin acquisition strategy starting in August, 2020:
And while copying the strategies of Apple, or Meta, or nVidia is impossible for most today, anyone can copy Microstrategy’s playbook.
#9 Other Financial Institions Should Copy Microstategy’s Strategy
An institution with $1B in assets today could grow that to $300B in 2045 by deploying an aggressive Bitcoin strategy.
#10 Saylor Finished By Highlighting That Countries, Both Rich And Emerging, Could Also Benefit From An Aggressive Bitcoin Strategy
Saylor outlined the strategy below for countries, both rich and less so:
Saylor shows how an emerging country with $400B of debt today, and tracking to a $3T in debt in 2045, could wipe out all debt by 2045 by printing money and implementing the base BTC Maxi strategy Saylor outlined
Similarly, the U.S. could wipe out all of its debt via a Doubl;e Maxi Bitcoin acquisition strategy:
Saylor noted that given the large quantities of Bitcoin acquired by the U.S. in the double or triple maxi strategy, its a strategy that can only be implement buy one or two large countries.
Saylor finished with a prescient Satoshi quote made 14 days after launching the Bitcoin network:
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This content is for educational purposes only. It does not constitute trading advice. The author of this article may hold assets mentioned in the piece.
