Bitcoin as an Investment Asset: How Strategy is Redefining the Role of Digital Gold

At the Bitcoin MENA conference in Abu Dhabi, Michael Saylor, Head of Strategy, presented a fundamentally new approach to understanding Bitcoin. Unlike the traditional perception of cryptocurrency as future money, Saylor positions Bitcoin as a hard asset, similar to crude oil, which needs to be processed into various financial instruments.

Strategy builds bridges between Bitcoin and traditional finance

Strategy’s approach is to provide institutional investors access to Bitcoin through familiar corporate mechanisms. The company has issued several classes of preferred shares that allow investors to gain exposure to Bitcoin without directly purchasing the cryptocurrency. The average cost per coin in the company’s portfolio is approximately $75 000, while total acquisition costs have reached $50 billion.

According to corporate data, as of December 15, Strategy has accumulated 671,268 Bitcoin, controlling 3.2% of the total supply. The company’s portfolio exceeds the portfolios of the next largest corporate owners by 12 times. The current value of Strategy’s Bitcoin assets is estimated at approximately $60 billion, indicating institutional trust in this asset.

An asset, not money: a new perspective from economists

Economist Saifeddin Ammus commented on Saylor’s position in the Chain Reaction show, noting a fundamental difference in understanding the role of Bitcoin. In his view, this approach does not change Bitcoin’s monetary properties but opens new possibilities for its use as a store of value.

Ammus is convinced that Bitcoin will gradually transition from a financial asset to true money when enough people start holding it directly. Considering that the global money supply grows annually by 7–15%, Bitcoin as a deflationary asset becomes increasingly attractive to businesses and private investors.

Institutional attention to Bitcoin intensifies

The new approach to Bitcoin as a reliable asset has attracted the attention of global investors. Norges Bank Investment Management, the investment arm of the Norwegian central bank, currently holds Strategy shares worth about $500 million as of the second half of 2024.

This interest from central banks and large financial institutions indicates a shift in perception of Bitcoin in the traditional financial world. What was only a few years ago seen as a speculative asset is now regarded as a legitimate investment instrument in the portfolios of the world’s largest players.