Michael Saylor, Executive Chairman of Strategy, recently shared a startling prediction about Bitcoin's future in a podcast interview: Bitcoin could appreciate at an average annual rate of nearly 29% over the next two decades.

Bitcoin is quietly transforming from a wild speculative game into a value storage tool favored by institutions. He believes that Bitcoin's recent flat price trend is not a sign of weakness but rather a manifestation of market strength. The market is in a consolidation phase—long-term holders are selling some of their holdings, while institutional investors are preparing for larger allocations.

The gradual fading of volatility is a very positive signal, creating conditions for large institutional investors to enter this field and make large-scale investments.

Market Enters Mature Stage, Institutional Investors Accelerate Entry

Saylor pointed out that the Bitcoin market is going through a "growth phase," which is a natural part of its lifecycle. As institutional investors accelerate their entry, Bitcoin's declining volatility makes it "boring" for thrill-seeking retail investors, but this is a natural growth phase and a positive signal.

Data shows that this transformation is indeed underway. Bitcoin reserves on centralized exchanges have dropped to approximately 2.5 million, the lowest level since October 2018. From the end of 2024 to now, in just a few months, 500,000 Bitcoins have flowed out of exchanges.

Rise of Bitcoin Treasury Companies, Recycling Stranded Capital

Strategy (formerly MicroStrategy) is the world's most well-known corporate Bitcoin holding institution. Its massive investment in Bitcoin and unique business model have made it a focus at the intersection of cryptocurrency and traditional finance.

Strategy holds a total of 638,985 Bitcoins, making it the largest Bitcoin DAT company, valued at approximately $74 billion. At its core is an innovative Digital Asset Treasury (DAT) model, which operates as follows: the company raises funds by issuing stocks (such as "at-the-market" ATM programs) and various bonds (especially convertible bonds and preferred shares) to purchase and hold Bitcoin in large quantities.

Saylor compared the rise of Bitcoin treasury companies to the early stages of the petrochemical industry, predicting a chaotic but transformative decade with the emergence of various products, business models, and wealth. He explained that Bitcoin treasury companies "recycle stranded capital just as miners recycle stranded energy." This trend has already emerged—since November 2024, listed companies have withdrawn over 425,000 BTC from exchanges.

Major Shift in Investment Landscape, Responding Rationally to the New Cycle

Facing the market transformation, Saylor advises investors to understand that Bitcoin's role has changed—it is transitioning from a speculative asset to a value storage tool. With the participation of large institutions and corporations, the Bitcoin market is expected to gain greater recognition and support, continuing to play an important role in the global financial system.

Saylor's vision is being partially validated. Institutional investors are steadily increasing their allocations to Bitcoin. BlackRock has accumulated over 662,500 Bitcoins through the iShares Bitcoin Trust, accounting for more than 3% of Bitcoin's total supply. Over 8% of Bitcoin's total circulating supply is now held by governments and institutional investors, a level of sovereign and institutional participation in a decentralized asset that is unprecedented.

In the next decade, we will witness a "digital gold rush," during which numerous new models and products will emerge, accompanied by mistakes and wealth creation.