Michael Saylor says what will make Bitcoin reach $1 million

Source: PortaldoBitcoin Original Title: Michael Saylor says what will make Bitcoin reach $1 million Original Link: The founder of Strategy, Michael Saylor, predicts that if the company manages to hold 5% of the total Bitcoin supply, the value of a unit of BTC will be US$ 1 million. The analysis was made in an interview for a podcast on Friday (19).

Saylor pointed out that Strategy currently holds 3.2% of the Bitcoin supply and that the company had to shell out $50 billion to purchase that amount. But the next steps will likely be even more costly: “I think the next $50 billion won't get me another 3.2%. They will probably get me 1% or less.”

Subsequently, the entrepreneur made his prediction that if Strategy reaches 5% of the supply, Bitcoin will reach $1 million. If it reaches 7.5% of the BTC supply, the asset's price will go to $10 million.

“Think of it this way: I am buying something that is becoming exponentially more expensive using exponentially more money,” Saylor explained.

The entrepreneur pondered that a large asset manager, with its ETFs, bought $100 billion in Bitcoin and Strategy spent $50 billion. These factors strengthen the asset: “Think of it as us energizing the network.”

Strategy builds a reserve to prevent against a drop in Bitcoin

In early December, Strategy set up a reserve of $1.44 billion as a way to ensure the payment of continuous and stable dividends, even during periods of Bitcoin downturn.

Although this reserve seems to serve as a protection to prevent the company from having to sell part of its 3.1% reserve in the total supply of Bitcoin, the Strategy has not ruled out the possibility of having to sell BTC — with the company's CEO outlining what the future would look like if that happened.

The Strategy constituted the reserve in dollars by selling shares of MSTR, as revealed by CEO Phong Le. The company intends to have reserves equivalent to at least 12 months of dividends, with the ultimate goal of expanding this reserve to cover more than 24 months of dividends.