This week, MicroStrategy (NASDAQ: MSTR) hosted a virtual conference titled 'Bitcoin for Corporations,' aiming to attract more corporate entities into the crypto space. Ahead of the event, CEO Michael Saylor revealed that professionals from more than 1,400 firms would join the discussion. Speaking at the event, Saylor reiterated his bullish outlook and predicted an 'avalanche of companies' adopting bitcoin over the next 12 months.
Background: Monetary Expansion Drives Corporate Bitcoin Treasuries
Since 2020, the global M2 money supply has expanded significantly, with an estimated 25-30% of all U.S. dollars ever printed created that year. This has prompted many corporations to exchange cash and bonds for bitcoin (BTC) to hedge against fiat currency devaluation. MicroStrategy pioneered the trend, followed by Square and other public and private firms. As of February 2021, MicroStrategy held 71,079 BTC, worth approximately $2.6 billion at current exchange rates.
'Avalanche' Prediction and Supporting Data
During the first day of the conference, Saylor stated: 'The reason we’re having this conference is to help everybody else figure out what they should do. The simple solution is to convert some of that cash into bitcoin—We did it, Square did it. You’re going to see an avalanche of companies in the coming 12 months also converting their balance sheets into bitcoin because it’s a scarce digital safe-haven asset.' His quote quickly circulated on social media, as the community hopes for more institutional involvement. According to bitcointreasuries.org, corporate entities collectively hold 1,233,038 BTC, representing 5.87% of the total supply, worth about $46.5 billion.
Saylor emphasized the growing difficulty of preserving wealth and the rising cost of capital, while highlighting bitcoin's scarcity and decentralized nature as ideal treasury attributes. The event also covered legal considerations, corporate playbooks, and macro strategy to guide firms on integrating bitcoin.