Key Takeaways
- Michael Saylor claims Bitcoin can outperform traditional capital strategies by 40% annually.
- Wall Street continues to undervalue the crypto ecosystem despite its strong returns.
- MicroStrategy ranks among the most profitable S&P 500 companies but remains undervalued.
MicroStrategy Executive Chairman Michael Saylor emphasized that the entire cryptocurrency ecosystem, especially Bitcoin, is still undervalued by Wall Street. While speaking to Fox Business Network (FBN), Saylor said that Bitcoin’s average annualized return is more than 50% which is a massive growth comparing to other traditional investment assets.
He remembered that the fourth most profitable financial company in the United States, MicroStrategy, was a company with the most number of profits among the S&P 500. However, by going through the company profile, he found that MicroStrategy is still undervalued when it is looked at through the lens of traditional valuation metrics such as the price-to-earnings (P/E) ratio.
Bitcoin as the New Corporate Capital Standard
Saylor claimed that corporations that are reliant on traditional assets like US Treasuries are the ones who should be worried because they are going to rake in less returns. To be specific, he argued that they will generate returns that are lower than the benchmark index by approximately 10% on a yearly basis. On the other hand, companies that use Bitcoin as a tool for their capital allocation strategy are the ones that can beat the market by as much as 40% each year.
He elaborated that the “Bitcoin standard” transition might be the new trend of capital management within the corporate world in the coming years. The more the adoption, the more the beautiful benefits he predicts for Bitcoin to cement its position as the way for wealth storage and growth in a digitized economy.
Crypto’s Growing Acceptance on Wall Street
Despite Bitcoin’s track record, Saylor believes institutional investors still fail to fully recognize the transformative potential of cryptocurrencies. He views this as both a challenge and an opportunity for forward-thinking firms to gain a competitive edge by adopting crypto early.
MicroStrategy’s strategy of holding Bitcoin as a treasury reserve asset has already positioned it as a leader in corporate Bitcoin adoption. Saylor expects more firms to follow suit, paving the way for broader Wall Street acceptance.
Summary
Michael Saylor stresses that Wall Street is underestimating Bitcoin’s potential despite its remarkable returns. He sees Bitcoin adoption as a way for companies to significantly outperform traditional benchmarks and believes the “Bitcoin standard” could soon become a global corporate norm.
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