Billionaire Michael Saylor, the executive chairman of an enterprise software vendor MicroStrategy (NASDAQ:MSTR)is a prominent one Bitcoin (CRYPTO: BTC) bull. This view has worked out well for him after the price of the world’s most valuable cryptocurrency has seen a 151% increase in price in 2024 (as of the afternoon of December 17).
Saylor has positioned MicroStrategy to raise equity and debt capital buy Bitcoin aggressively. And he remains incredibly bullish on digital assets long-term, predicting a price target of $13 million by 2045.
Here’s how much a $100 investment would be worth if the crypto reaches that lofty figure.
Saylor, whose net worth is estimated at around $10 billion, became bullish on Bitcoin in 2020, viewing it as a better place to park capital than cash. In August of that year, MicroStrategy purchased the digital asset to spin it off on its own balance. As time passed and the price of the crypto continued to rise, Saylor’s conviction became even stronger.
Today, his company can be seen as a Bitcoin holding company. As of October 30, MicroStrategy owned 252,220 bitcoins, which at today’s price is worth almost $27 billion, equal to more than 1% of the asset’s entire market capitalization.
Seeing the price continue to rise is certainly a positive outcome for Saylor and MicroStrategy shareholders. And he has never shied away from speaking his mind.
The base case that the price will reach $13 million by 2045 is based on the assumption that 7% of the world’s total asset base – including money in areas like real estate, stocks and bonds – will flow into Bitcoin. Currently, that figure is less than 0.2%.
This means that if someone were to invest just $100 in Bitcoin now, that holding would be worth $12,200 in 21 years if the base case holds true. That’s an incredible return that translates into an average annual gain of 25.7%.
Saylor’s most bullish case predicts 22% of the global asset base going into crypto, with a price target of $49 million. That would be a value of $46,000 for the current $100 investment. And even in the bear case scenario, he sees the price rising 28 times over the next 21 years to $3 million. Here your $100 would grow to about $2,800 by 2024.
Every time someone throws out such large numbers, it certainly catches everyone’s attention. This is doubly true considering how lucrative Michael Saylor’s faith in Bitcoin has been in recent years.
However, it is important that investors understand how difficult it is to make accurate long-term forecasts. No matter how smart someone is or sounds, no one even knows approximately what the price of crypto will be in the next week, month, quarter or year, let alone in the next twenty years. There are so many variable factors at play – such as investor sentiment, macroeconomic forces, regulatory changes and technological developments – all of which have an impact.
