Few, if any, investors have been more bullish on Bitcoin (BTC 0.03%) than Strategy's Executive Chairman Michael Saylor, who bet big on Bitcoin in 2020 and has been rewarded many times over.
Strategy is viewed as the pioneer of the Bitcoin treasury movement, in which companies are able to tap the capital markets to raise funds they can use to buy Bitcoin. Strategy itself now owns 3% of all outstanding Bitcoin. Despite significant sell-offs and criticism, Strategy's stock is now up over 2,200% over the past five years, which is simply astounding.
Saylor also thinks that Bitcoin's epic run is still in the early innings. He thinks the world's largest cryptocurrency can still soar 18,254% over time. Here's why.
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Keep the number 21 in mind
During a keynote speech at the Bitcoin Prague 2025 conference earlier this year, Saylor advised investors to remember the number 21, which is significant in the Bitcoin world because there will only be 21 million Bitcoin tokens mined. "I think we're going to be $21 million in 21 years. It's a very special time in the network. Maybe the one time in the history of the network where you look out 21 years and you see $21 million," Saylor said.
If Bitcoin reaches $21 million by 2046, that implies upside of 18,254% based on current levels (as of Sept. 11). This also implies a compound annual growth rate of over 28%, which significantly exceeds that of Warren Buffett's company Berkshire Hathaway, which generated a nearly 20% CAGR over six decades. It also exceeds the S&P 500's 60-year CAGR of 10.4% including dividends.
Bitcoin has performed phenomenally well since President Donald Trump got elected last November, primarily because the Trump administration has been focused on making the U.S. the crypto capital of the world. Trump has implemented executive orders creating a U.S. Strategic Bitcoin Reserve and making it easier for 401(k) plans to invest in Bitcoin and other digital assets.
CRYPTO: BTC
Key Data Points
Trump has also installed pro-crypto regulators and advisors, while Congress has passed key legislative bills that promote stablecoins and will attempt to establish a regulatory framework for digital assets. This has also given the green light to mainstream financial institutions to custody Bitcoin and further interact with digital assets. This allows more traditional investors to invest in cryptocurrencies and crypto stocks without as many regulatory concerns as they once had.
Saylor is also part of a growing group of investors who believe Bitcoin is a form of digital gold and, therefore, a hedge against inflation. Gold itself has outperformed the broader market, as investors have piled into the safe haven in recent years amid geopolitical concerns and the U.S. government's growing debt pile, which has prompted the major credit rating agencies to lower their rating of U.S. debt.
What to make of Saylor's monster projection
Investors should take massive Bitcoin and crypto projections like this with a grain of salt. Bitcoin and crypto are different from publicly traded stocks because they don't generate earnings and free cash flow, which is what most stocks are valued on.
Now, this doesn't mean you can't own Bitcoin for the long term. It remains to be seen if Bitcoin is truly a form of digital gold, but there is definitely a chance that it could be a good store of value due to its finite supply. BlackRock, the largest asset manager in the world, has said that investors can allocate up to 2% of capital in a multi-asset portfolio to Bitcoin.
I would recommend holding at least some Bitcoin because it could prove to be a unique form of diversification that very few assets can offer. However, I wouldn't expect it to hit $21 million in 21 years, although in the world of crypto, one can never say never.
