Michael Saylor, the executive chairman of Strategy (MSTR), posits that bitcoin likely reached its lowest point in early February at a value of $60,000. At a recent Mizuho event, he reiterated his belief that market bottoms are not primarily based on valuations but rather result from seller exhaustion, according to analysts Dan Dolev and Alexander Jenkins.
Saylor further emphasized that trend reversals hinge more on capital structure and liquidity than investor sentiment. He observes limited selling pressure now due to increased demand driven by ETF inflows absorbing daily supply and companies transferring treasury assets into bitcoin.
Regarding the catalyst for an impending bull market, Saylor anticipates it will stem from the creation of banking credit and digital credit atop bitcoin, facilitating more lending and credit activities beyond mere buy-and-hold interest.
Saylor noted that digital credit is already present through Strategy’s STRC preferred stock, offering a yield of 11.5%, which he believes is significantly lower than his expectations for BTC’s long-term value growth. He described Strategy as ‘stretching’ bitcoin from a non-yielding asset into a capital markets engine.
Addressing the recent debate on quantum computing risks to bitcoin, Saylor considered these concerns exaggerated. He argued that such threats are speculative, potentially decades away, and even then manageable.
Mizuho maintained its outperform rating for Strategy with a $320 price target, indicating about 150% potential upside from the current level of $127.