Michael Saylor says what will make Bitcoin reach US$ 1 million

Source: PortaldoBitcoin Original Title: Michael Saylor says what will make Bitcoin reach US$ 1 million Original Link: Strategy founder Michael Saylor predicts that if the company manages to hold 5% of the total Bitcoin supply, the unit price 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 owns 3.2% of the Bitcoin supply and that the company had to spend US$ 50 billion to acquire that amount. But the next steps are expected to be even more costly: “I think the next US$ 50 billion will not give me another 3.2%. It will probably get me 1% or less.”

Following that, the businessman made his prediction that if Strategy reaches 5% of the supply, Bitcoin will hit US$ 1 million. If it reaches 7.5% of the BTC supply, the asset’s price will go to US$ 10 million.

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

The businessman noted that BlackRock, with its ETFs, bought US$ 100 billion in Bitcoin, and Strategy spent US$ 50 billion. These factors strengthen the asset: “Think of it as us energizing the network.”

Strategy builds reserve to prevent Bitcoin price drop

In early December, Strategy established a reserve of US$ 1.44 billion as a way to ensure continuous and stable dividend payments, even during Bitcoin downturns.

Although this reserve seems to serve as protection to prevent the company from having to sell part of its 3.1% reserve of the total Bitcoin supply, Strategy has not ruled out the possibility of having to sell BTC.

Strategy built the reserve in dollars by selling MSTR shares. The company aims 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.