Bitcoin enthusiast MicroStrategy's boss Michael Saylor insists he 'will never sell' Bitcoin, which indeed raises an interesting question: If profits can't be made through selling, what is his strategy? After all, Bitcoin does not pay dividends like stocks, and the current revenue model mainly relies on future price increases.
If Saylor and his interest group are planning a 'bigger game' to enable Bitcoin to generate cash flow, this is indeed a bold speculation. Here are some possible conjectures:
Potential pathways for Bitcoin to generate cash flow
If Michael Saylor and MicroStrategy truly want to generate cash flow from Bitcoin, there are several directions worth exploring:
* Earning revenue through collateralized lending: One of the most direct ways is to use the Bitcoin held as collateral to lend fiat currency or other cryptocurrencies. Through this method, they can obtain funds without selling Bitcoin and invest these funds into other profit projects or reinvest to expand their Bitcoin holdings. This is similar to collateralized loans in traditional finance, except the collateral is Bitcoin.
* Infrastructure and services: Another possibility is that they are actively investing in the infrastructure development or related services of the Bitcoin ecosystem. For instance, developing Bitcoin-based financial products, payment solutions, or providing Bitcoin custody and lending services. These services themselves can generate fees or interest income, thereby creating 'cash flow' for their Bitcoin holdings. Imagine if they could build a massive Bitcoin financial empire, then Bitcoin itself would no longer just be an asset, but the cornerstone of this empire's operations.
* Promoting the 'Bitcoin Standard': Saylor has always been an advocate for Bitcoin as a 'global reserve asset' and 'store of value.' They might be actively promoting the adoption and application of Bitcoin at the corporate, institutional, and even national levels. If Bitcoin can truly become a mainstream method of payment and settlement, then the services related to trading, exchanging, and clearing around Bitcoin would generate huge cash flows. This is not just about price appreciation, but a whole economic activity built on top of Bitcoin.
* Bitcoin mining business: Although MicroStrategy's current main business is not mining, it is not ruled out that they might engage in large-scale Bitcoin mining in the future. Mining itself can continuously generate new Bitcoins, and these newly produced Bitcoins can generate cash flow directly upon sale. If mining costs can be kept at very low levels, this would become a never-ending money-printing machine.
* Applications and protocols based on Bitcoin: With the development of Bitcoin technology, there may be more applications based on the Bitcoin blockchain or second-layer protocols (such as the Lightning Network) emerging in the future. If MicroStrategy can participate in or invest in these innovative projects and earn revenue shares from them, it could also bring indirect cash flow to its Bitcoin assets.
Overall, Michael Saylor's declaration of 'never selling' seems more like a strategic announcement for long-term holding rather than a mere belief. Behind it could be a grander plan aimed at utilizing Bitcoin to create economic activity and revenue. They might be trying to transform Bitcoin from being merely 'digital gold' into an asset with productive functions, allowing Bitcoin to not only 'appreciate' but also to 'generate money.'
This also makes us ponder what other untapped potentials exist in the world of Bitcoin, aside from the buy-sell price differences?