MicroStrategy Inc. (NASDAQ:MSTR) Executive Chairman Michael Saylor on Tuesday said he believes institutional investors have yet to allocate enough capital to Bitcoin (CRYPTO: BTC), despite its increasing acceptance as a financial asset.
“If it's a legitimate institutional asset, everybody is under-allocated to it,” he told CNBC.
New regulations are making it easier for companies to hold Bitcoin on their balance sheets, Saylor added. The Financial Accounting Standards Board's fair value accounting rules, for example, require companies to report cryptocurrencies at fair market value.
“Fair value accounting is going to create much more transparency and clarity in P&Ls and balance sheets for any companies that are holding Bitcoin,” Saylor explained. This could encourage corporations to treat Bitcoin as a treasury reserve asset, similar to government bonds and sovereign debt.
Saylor compared Bitcoin's growth to past technological shifts, drawing parallels to how companies like Apple and Google reshaped communication and information access.
He argued that Bitcoin represents the digitization of capital, with global financial markets gradually moving toward broader adoption. “Right now, 99.9% of the capital in the world is tied up in real estate, stocks, precious metals, and bonds,” he said.
“As people get educated on digital assets, they realize they should be allocating more and more of their capital to this digital asset.”
Saylor also suggested that the market is still in the early stages of a major transition.
“If Bitcoin's not going to zero, it's going to a million,” he said, reinforcing his belief that increased institutional participation will push Bitcoin's valuation significantly higher over time.
Bitcoin's price has seen a strong rally in recent months, a trend Saylor attributes to a combination of institutional demand, macroeconomic conditions, and upcoming market events.
Spot Bitcoin ETF approval, a shift in Federal Reserve policy, and the Bitcoin halving are factors that fueled bullish sentiment.
Also Read: State Pension Funds Key To Bitcoin Hitting $500K, Long-Only Money Needed: Standard Chartered
“The spot ETF news is good news. Loosening of monetary policy is good news. Inflation anywhere in the world drives Bitcoin adoption,” he said.
He also highlighted the impact of the Bitcoin halving, an event that reduces the number of new Bitcoin entering circulation.
“The halving is going to cut the available supply of Bitcoin for sale in half from the miners,” Saylor explained.
With a limited supply and increasing institutional interest, he believes Bitcoin remains well-positioned for long-term growth.
Saylor also dismissed concerns about mining centralization, arguing that the industry remains geographically diverse.
“People focus on mining pools, but the actual mining is taking place in Bhutan, Argentina, South America, Texas, Europe, Iceland, and Africa,” he said.
He noted that miners tend to migrate toward regions with abundant, low-cost energy sources, ensuring decentralization over the long term.
With regulatory clarity improving, institutional adoption increasing, and macroeconomic factors supporting demand, Saylor expects Bitcoin to attract more investors.
“We've got a confluence of very bullish milestones over the next six months,” he said, suggesting that Bitcoin's trajectory remains upward.
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