• Michael Saylor says Bitcoin will grow faster than the S&P 500 for the next two decades.
• Strategy plans to use Bitcoin as collateral for building new long-term financial credit products.
• Bitcoin may replace traditional assets as the preferred store of value for large institutional investors.

Michael Saylor, co-founder and executive chairman of Strategy, has forecasted long-term dominance for Bitcoin over the S&P 500. He claimed Bitcoin will continue to outperform the index, predicting it could gain nearly 29% annually. In contrast, he estimated that the S&P 500 would lose value at a similar rate when measured against Bitcoin.

This projection comes from his recent comments on a crypto-focused podcast. Saylor has been a key voice in corporate Bitcoin advocacy since Strategy began acquiring the digital asset in 2020. His firm now holds over 638,000 BTC. This holding is among the largest by any public company.

Bitcoin as Collateral for Future Financial Products

Saylor views Bitcoin as a new form of “digital capital.” He believes it will support the next generation of credit markets. According to him, Bitcoin-backed loans could provide longer durations and stronger returns. He noted that the asset’s predictable appreciation offers advantages for structuring stable financial products.

He further stated that the fixed supply and decentralized engineering of Bitcoin made it appropriate to be used as collateral in the long term. In comparison, he attacked the conventional currencies, which are depreciated by inflation and central bank interventions. Using such currencies as collateral, he said, can increase financial instability.

Shift in Investment Thinking

Saylor challenged traditional finance models that favor income-producing assets. He compared Bitcoin to property assets such as land, gold, or even art. These assets hold value without generating cash flows. For Saylor, Bitcoin fits within this class and may become the default choice for long-term wealth storage.

He noted that Bitcoin has already outperformed the S&P 500 over the past decade. Despite recent volatility, he said Bitcoin remains on a growth track. Price fluctuations, he suggested, come from early holders who cannot borrow against their assets. These investors are forced to sell, which redistributes Bitcoin to institutions.

He claimed this redistribution phase allows the market to mature. As more institutional investors enter, the asset becomes less volatile. He predicted that digital credit products backed by Bitcoin could soon challenge traditional debt instruments.

Strategy’s Path to Index Inclusion

Saylor also addressed Strategy’s current absence from the S&P 500 index. Last year, MicroStrategy had to achieve cumulative positive profits over four quarters to qualify for S&P 500 inclusion. He said the company recently became eligible for inclusion. Fair value accounting changes and improved profitability were key milestones. However, the inclusion process remains slow and requires sustained financial performance.

He compared Bitcoin treasury adoption by corporations to early developments in the oil industry. The space remains in flux, with models still forming. Saylor stated that broader adoption will bring more defined financial structures over time.