Bitcoin Pioneers Aim to Drive Price to $3 Million Through Corporate Adoption

Michael Saylor and Adam Back have unveiled an ambitious plan to drive the price of Bitcoin (BTC) to $3 million. Their strategy involves transforming traditional companies into highly efficient Bitcoin acquisition entities, leveraging the vast potential of credit markets and innovative financial instruments.

Saylor's strategy is encapsulated in a simple yet profound statement: “I will issue billions and billions of securities to buy billions and billions of bitcoin.” This approach represents a significant financial shift, where companies act as amplifiers for Bitcoin adoption. Unlike individuals, who are limited by their income, companies can mobilize substantial capital, transforming linear accumulation into exponential growth.

Saylor uses the analogy of a dentist to illustrate this transformation. An individual dentist might accumulate a few hundred thousand dollars in Bitcoin over twenty years, while a dental company could raise one million dollars in a month to purchase Bitcoin immediately. Public companies have the financial superpowers to issue stocks, convertible bonds, and preferred shares, allowing them to mobilize capital at an accelerated pace compared to traditional investment cycles.

Back and Saylor have developed new native BTC metrics to evaluate these companies. For instance, “BTC gain” is equivalent to traditional profits but is based on Bitcoin. MicroStrategy has created financial instruments like Strike and Strife. Strike offers a 40% upside of the stock with an 8% dividend and capital protection, while Strife proposes a 10% dividend guaranteed by over-collateralized Bitcoin. These products target different pools of capital, including cautious Bitcoin investors and retirees seeking high returns without direct exposure to Bitcoin volatility.

The potential market for this transformation is enormous. Equity markets represent $100 trillion worldwide, while credit markets reach $300 trillion. This disparity highlights the massive opportunity for Bitcoin treasury companies. Currently, all these instruments are valued based on uncertain future cash flows in depreciating fiat currencies. In contrast, Bitcoin-backed instruments benefit from an appreciating collateral with a transparent monetary policy.

This transformation is not a competition among Bitcoin companies but a collaboration to digitize all financial markets of the 21st century. Each new company adopting this model strengthens the legitimacy and attractiveness of the Bitcoin-based financial system. Adam Back presents the evolution towards tokenized markets operating 24/7, enabling the trading of shares of companies holding Bitcoin in treasury directly against Bitcoin, thus eliminating traditional frictions. The Liquid technology from Blockstream facilitates these trustless exchanges with limit orders and instant settlement, solving the problem of unequal access to international markets.

Saylor and Back's strategy is not just about enriching shareholders; it is a methodical plan to Bitcoinize the global economy. Each company adopting this model withdraws Bitcoin from spot markets to store it permanently, increasing its scarcity and potentially driving up its price. The ultimate goal is the complete transformation of the $400 trillion traditional credit markets, which could propel Bitcoin to the price levels mentioned by the two pioneers: $3 million. This massive migration represents the beginning of a financial revolution, where Bitcoin becomes the backbone of the global financial system.