Is MicroStrategy the bitcoin bank Hal Finney dreamed of?
When bitcoin (BTC) was at $0.30, Hal Finney wrote in December 2010, “there is a very good reason for bitcoin-backed banks to exist.” Fast-forward 14 years, and Michael Saylor announced that his MicroStrategy (MSTR) “endgame is to be the leading bitcoin bank.” Outranked only by Satoshi Nakamoto, Blackrock’s IBIT ETF, and vanishingly few other holders of bitcoin (BTC), Saylor’s company holds 3% of the circulating supply in its $65 billion treasury. Given the size of his asset base, Saylor has a market-leading ability to fractionalize its reserve for a substantial population of prospective banking customers. For context, MicroStrategy’s treasury is roughly equal to the deposit base of banks like Comerica or Santander — and it plans to continue increasing its size. ‘Very good reason for bitcoin-backed banks to exist’ In 2010, Finney was working on co-creating the Bitcoin network with a small number of cypherpunks, including months of personal discussions with...